“In some municipalities we’re taxed on everything we operate, and other municipalities we’re taxed on nothing that we operate.”
Adam Kinder, Chief Financial Officer of Holland Home, testified before the Michigan House Finance Committee as it considers addressing property tax policy for nonprofit Continuing Care Retirement Communities or CCRCs.
There are nearly 30 of them statewide offering independent or assisted living, memory care and skilled nursing, serving thousands of seniors statewide.
“If I were to pick up one of our campuses today, move it to another municipality, maybe I wouldn't have to pay property taxes at all, despite the fact I'm delivering the exact same
care to the exact same people.”
Kinder argues that inconsistent property tax assessments on such facilities add financial strain for residents, many of whom live on fixed incomes.
It also limits the ability of CCRCs to expand services, invest in communities and maintain affordable care options.
“We're going to need to serve more people than we've ever served in our state's history. Yet we’re having to pause and think about: ’Is this really the most cost-effective place for us to expand, knowing that we might be subjecting ourselves and then, also our residents, to significant costs as it pertains to property taxes?”
The proposed legislation would clarify that registered nonprofit CCRCs qualify for property tax exemptions across all levels of care, ensuring consistent treatment statewide.
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