Hospital Granted Tax Break Despite Parent Company’s Exec Pay

Compensation of executives at a hospital’s parent company doesn’t prevent the subsidiary from qualifying as an institution of public charity for purposes of an exemption from local property taxes, the Pennsylvania Supreme Court said Friday.

Unless there’s evidence to justify piercing the corporate veil to reach the parent, “only the salaries of the executives of a corporation seeking the tax exemption, and the net impact the payment of fees by that organization to a parent or affiliate corporation has on its own ability to fulfill its charitable mission, are relevant” to the exemption analysis, Chief Justice Debra Todd wrote for ...