IN HB1384

Real property owned by nonprofit hospitals (excluding critical access hospitals and county hospitals) purchased before July 1, 2026, loses its property tax exemption if not used for revenue-producing health care services within 10 years of purchase

Real property purchased by nonprofit hospitals after June 30, 2026, must be actively used for revenue-producing health care services to qualify for property tax exemption, with no grace period

"Health care services" is defined to include patient assessment, diagnosis, evaluation, consultation, treatment, monitoring, as well as medical education, preventative care, rehabilitative services, long-term care, and necessary administrative services

Parking garages, parking lots, equipment facility areas, and similar supporting properties that actively serve a nonprofit hospital remain exempt from the new requirements

Local boards of zoning appeals have jurisdiction to determine whether supporting properties actively serve a nonprofit hospital; effective date is January 1, 2027