Covenant Healthcare Sys., Inc. v. City of Wauwatosa

Covenant Healthcare, the sole member of a regional medical center that owns an outpatient clinic, constructed a building in the City of Wauwatosa to house the outpatient clinic. Covenant sought a tax exemption with the City for the clinic as property used exclusively for the purpose of a hospital under Wis. Stat. 70.11(4m)(a). The city assessor denied the exemption. After paying the assessed tax, Covenant brought an action to recover the amount of the City's allegedly unlawful assessment. The circuit court concluded that the clinic was exempt from taxation pursuant to the statute. On appeal, the court of appeals reversed. On review, the Supreme Court reversed the decision of the court of appeals, holding (1) the outpatient clinic is used for the primary purposes of a hospital and therefore qualifies as tax-exempt property under the statute; (2) the outpatient clinic is neither a doctor's office nor a property used for commercial purposes within the meaning of the statute; and (3) no benefit inures to any member of the medical center because the term "member" under the statute does not include not-for-profit entities. View "Covenant Healthcare Sys., Inc. v. City of Wauwatosa" on Justia Law