New Law Exempts Nonprofit Assisted Living Facilities From Ad Valorem Tax

Governor Rick Scott recently signed into law HB 7109 (Ch. 2017-36, Laws of Florida). Presently, property used by nursing homes, hospitals and homes for special services that are exempt from taxation under Section 501(c)(3) of the Internal Revenue Code are exempt from Florida ad valorem tax.

The new law will now exempt nonprofit assisted living facilities from ad valorem tax, beginning in calendar year 2017. In order to qualify for the ad valorem tax exemption, the statutes require the assisted living facility to be a Florida nonprofit corporation exempt from tax under Section 501(c)(3) of the Code. Also the assisted living facility must hold a valid license issued by the Florida Agency for Health Care Administration on January 1 of the year for which exemption from ad valorem taxation is requested. In addition, the nonprofit assisted living facility must submit an exemption application to the county property appraiser on or before March 1 of each year. If you need any assistance, please contact a member of our Healthcare & Life Sciences Team.