Board of Equalization considers NSHC property tax appeals

By Anna Lionas

Sitting as the Board of Equalization, Nome Common Council members sat down for a hearing last week between Norton Sound Health Corporation lawyers and an attorney for the City to review NSHC’s appeal of the city’s denial of property tax exemption for eight parcels that the corporation owns.

Councilmember Cameron Piscoya was excused due to a conflict of interest as he works as NSHC’s Chief Compliance Officer.
 
The total property tax for the parcels in question would amount to approximately $300,000 -$345,000 depending on the mill rate which is subject to change as the council is currently discussing next year’s budget. 
NSHC argued the properties should be exempt from property tax because it is a nonprofit hospital with a charitable purpose and because of the city’s exemption of taxation of federal properties, since they receive federal funding.
 
The City of Nome’s lawyer, Charles Cacciola, argued the denial is because the properties generate significant revenue and aren’t solely used for hospital staff or hospital purposes. He also stated that while NSHC receives federal funds, it is not located on “Indian land” but within city limits.
 
This appeal is just one chapter in a long-standing dispute between the city and the hospital over the exemption of properties.
 
A 2022 a court case between NSHC and the City of Nome regarding the same issue reached the Supreme Court of Alaska, with the city filing an appeal on the court’s ruling in favor of NSHC. The court case was cited by NSHC during arguments, but since it is being appealed, the legal applicability was uncertain.
 
NSHC also appeals the City’s denial of the 2024 tax exemption to the Superior Court of Alaska; a decision has not been made yet.  
 
After going over the broad arguments of the case, council members heard arguments for why each of the properties should be exempt. Two NSHC lawyers zoomed into the meeting, one arguing for state law the other federal. The city’s lawyer was present in council chambers to make the case for the city.
 
Over three hours of arguments took place, with pauses for questions from the council. It was established that many of the properties disputed are used for housing or temporary patient stays. Other uses for the parcels are for storage or are empty lots.
 
According to a document prepared by the city regarding the appeal, NSHC-owned property constitutes approximately one-quarter of all privately owned property in Nome.
 
With the long meeting being very taxing on their energy, council members resolved to finalize their decision on the appeal at the next council meeting, taking place May 20 at 7 p.m.
 
At the closing of the meeting Mayor John Handeland expressed a desire to put an end to the cycle of disputes and legal cases that occur between the city and hospital year after year regarding property tax.