Pennsylvania approves standards for charitable tax exemption
Back Page Briefs
December 31, 1997
HARRISBURG, PA—Ending a five-year lobbying effort conducted by hospitals and other not-for-profit charities in Pennsylvania, Gov. Tom Ridge signed legislation establishing standards that will have to be met for organizations to quality for exemption from state sales tax and local property taxes.
The Institutions of Purely Public Charities Act approved in November requires that to be considered a purely public charity, an organization must (1) advance a charitable purpose, (2) operate without a profit motive, (3) contribute gratuitously a substantial portion of its services, (4) benefit a substantial and indefinite class of people who are legitimate subjects of charity, and (5) relieve government of some of its burden. The legislation, which specifies means by which organizations can meet each of these tests, codifies a five-part test included in a 1985 state Supreme Court decision.
Robert O'Hara, executive director of the Pennsylvania Catholic Conference, said the legislation was "important to every community in Pennsylvania in that those truly charitable organizations can continue serving poor and needy Pennsylvanians rather than putting their limited funds into taxes or costly litigation." The bill also provides for "public service foundations" that could be formed by hospitals, charities, and other groups to make voluntary payments to local governments and school districts.
California Office of Small Business Development will give priority
to loan requests from Medi-Cal providers retooling for managed care
SACRAMENTO, CA—Loan applications from traditional Medi-Cal providers will be given priority consideration by the California Small Business Expansion Fund under a bill recently signed by the governor.
"AB 1230 provides much needed financial support to doctors and health care providers making the transition to managed care," said Assembly Member Rod Wright, author of the legislation. L.A. Care Health Plan, a public health plan serving Medi-Cal beneficiaries in Los Angeles County, was the sponsor of the legislation.
The California Office of Small Business Development operates the California Small Business Expansion Fund which will give priority consideration to traditional Medi-Cal providers to finance expansion and/or improvement of their equipment and facilities.
Contact Keith Malone at L.A.. Care Health Plan at 213-637-2403.
Pennsylvania approves standards for charitable tax exemption
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