SB 807

This bill creates a property tax exemption for all property owned or leased by

a nonprofit organization and located on or adjacent to the campus comprised of the

institutions commonly referred to as the Milwaukee Regional Medical Center.

Under the bill, leasing a part of the property does not render it taxable if the lease

income is used for any of the purposes for which the nonprofit organization is granted

an exemption from federal income taxes.

Current law provides property tax exemptions for certain nonprofit hospitals

and the grounds of any incorporated college or university. Under current law,

generally, leasing a part of exempt property does not render it taxable if the lessor

uses all the income derived from the lease for maintenance of the leased property,

retiring the construction debt of the leased property, or both. In addition, an

incorporated college or university may also lease its exempt property for educational

or charitable purposes without making it subject to taxation if it uses the lease

income for charitable purposes.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.