One of the results of Unity Medical Center converting its status to a nonprofit organization is that the hospital will no longer pay property taxes to Manchester City and Coffee County, an amount of more than $100,000 per year.
Property tax is one of the key drivers of city funding. This change in revenue will be one of the issues the Manchester Board of Mayor and Alderman will have to consider when making budget decisions, according to Manchester City Finance Director Bridget Anderson.
The matter was discussed on Jan. 5, when BOMA decided to continue the spending freeze and only pay half of the amount to local nonprofit organizations that count on the city’s financial support. The city contributes usually about $64,000 for local nonprofits. On Jan. 5, BOMA voted to pay half of that amount and revisit the issue again.
Acquiring a nonprofit status
According to City Attorney Gerald Ewell, the hospital converted to a nonprofit in 2019 and will no longer pay property taxes. This means the city’s coffers will lose an amount of about $50,000 per year.
The hospital paid real estate property taxes to the city: $34,783 for 2018; $28,940 for 2019.Unity Medical Center paid personal property taxes to the city: $21,274 for 2018; $14,039 for 2019. Unity Medical Center will no longer pay property taxes to the city.
Impact on county’s coffers
Unity Medical Center will no longer pay property taxes to the county either, an amount of about $60,000 per year.
According to the Coffee County Trustee’s office, Unity Medical Center paid for real property: $39,676 for 2019; $38,927 for 2018; $43,300 for 2017. Unity Medical Center paid for personal property: $19,248 for 2019; $23,809 for 2018; $22,780 for 2017.