Burns files measure to provide tax exemptions for some rural hospitals

In an effort to keep rural hospitals serving their communities, Sen. George Burns, R-Pollard, has filed Senate Bill 1774, which would allow for some hospitals to receive a tax exemption on the sale of personal property or services for hospital use.

To qualify for the exemption, hospitals must meet certain criteria. These include being housed in a building owned by a county or municipality; being operated by a tax-exempt 501(c)(3) organization; and being located in a county with a population of less than 100,000 people.  

“Nearly half of all Oklahomans live in a rural area of the state, so it’s critical our hospitals in these areas are open and available to serve our citizens,” Burns said. “Unfortunately, more than 80 rural hospitals across the nation have shut their doors over the last decade. Providing hospitals that are operating as a non-profit organization with a tax exemption will help keep their doors open so they can continue to provide high-quality health care for the Oklahomans who need it most.”

A nationwide study conducted by the Chartis Center for Rural Health found that despite rural hospitals receiving federal stimulus funds throughout the COVID-19 pandemic, about 25 percent of these facilities across the United States are at risk for closure in 2022.

“Stimulus funds provided these hospitals short-term solutions, but we must think outside of the box to give rural health care long-term stability,” Burns said. “This is just one way we can support our rural hospitals and provide them operating relief so they can better serve our citizens.”

The measure has been assigned to the Senate Finance and Appropriations Committees and will be eligible to be heard when the legislative session begins Feb. 7.