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Bill would tie hospital property tax exemptions to active health-care use; hospitals offer refinements

House Ways and Means Committee · January 14, 2026
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Summary

Representative Smolts' House Bill 13-84 would make large nonprofit hospital property tax exemptions contingent on active health-care use and give local PTABOA boards responsibility for parcel-level determinations; advocates and the Indiana Hospital Association broadly supported engagement but offered definitional and transition refinements.

Representative Smolts told the Ways and Means Committee that House Bill 13-84 would clarify that property owned by large nonprofit hospital systems is tax-exempt only when it is actively used in connection with providing health-care services; ownership alone would not guarantee exemption. The bill provides a 10-year runway for existing holdings and excludes critical access and county hospitals.

Smolts argued the change is targeted at…

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