EVERETT — Providence Regional Medical Center Everett got a $1.5 million refund last week for overpaying taxes on its local properties.
The hospital system paid an
average of about $400,000 per year too much during each of the past three and a half years, spokeswoman Cheri Russum said. Most of that was related to the Pavilion for Women & Children on Pacific Avenue.
Even after the reduction, Providence expects to send Snohomish County about $600,000 in yearly taxes for its Everett-area real estate, Russum said.
The refund is the result of Washington’s recently expanded property-tax exemption for nonprofit hospitals. Essentially, it extends a tax break to some hospital outpatient facilities. Previously, that break applied mostly to inpatient services.
In 2011, nonprofit hospitals are expected to get back $70 million statewide under those rules, Washington state’s Department of Revenue reported.
In Snohomish County, Providence Regional Medical Center’s refund comes out of money for the state schools levy, the Everett School District, the city of Everett, Port of Everett and the county.
The county sent the money to the hospital’s bank account last week, Treasurer Kirke Sievers said.
The taxing districts should be able to get most if not all of that money back by adjusting future levies. That will spread the amount among other taxable properties. The effect will be less cash on hand for the moment, but no real dent in the budget of local governments.
“Some of them might have to borrow money, but they’ll get it back,” Department of Revenue spokesman Mike Gowrylow said.
About 69 private, nonprofit hospitals with 557 parcels of land are benefiting from the state exemption, Gowrylow said.
Providence’s refund relates to taxes on five parcels in Everett. Hospital representatives applied for the exemption in October.
Noah Haglund: 425-339-3465; nhaglund@heraldnet.com.
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