TAX EXEMPTION

Indianapolis Osteopathic Hosp. v. Dep't of Local Gov't Finance, No. 49T10-0012-TA-127 (Ind. Tax Ct. Dec. 9, 2004)

The Indiana Tax Court ruled that a health club owned by a hospital and located on the hospital's campus did not qualify for a charitable purpose exemption. Although the health club was used 41 percent of the time to provide outpatient rehabilitation services, research, and community education, the court concluded that there was not sufficient justification to put privately owned health clubs at a competitive disadvantage by granting tax exemption to health clubs owned by hospitals.