Section 10 Hospitals

• Library: Tax Law 2009

In Frisco Employees’ Hospital Ass’n v. State Tax Commission of Missouri, 381 S.W.2d 772 (Mo. 1964), the Court held that an employees’ hospital association, which owned and operated a hospital with facilities generally available only to members of the nonprofit association who paid certain dues, was
not exempt from property taxes in 1963 as a charitable organization. The association contended that a hospital devoted to alleviating suffering, by its very nature, is used exclusively for purposes purely charitable, even though the hospital’s facilities are available only to members of the nonprofit association. The Court held that the hospital was not exempt from property taxes because its beneficence
was limited to members of the association. Query whether this case would be decided in the same fashion today. Se...