TAX EXEMPTION

Orange City Mun. Hosp. v. Board of Review of Sioux County,
No. 02-0114 (Iowa Ct. App. Oct. 15, 2003)

The Court of Appeals of Iowa held that a municipal hospital's assisted and independent living facility was exempt from property tax under Iowa law. The court found the facility's primary use was to benefit the rural aging population through an activity within the scope of the duties of a city hospital. The hospital fell within a governmental tax exemption, not a charitable one, and was not required to operate for a charitable purpose in order to be exempt. Any revenue generated by the facility was utilized for hospital operations and was not held for pecuniary profit in violation of the statute.