By Opinion dated January 29, 2014, the Pennsylvania Commonwealth Court upheld the October 15, 2012 decision of the Union County Court of Common Pleas, through which our Firm successfully obtained real estate tax exemption for Albright Care Services' CCRC located in Union County. On appeal, the Commonwealth Court concluded that Albright (a) first satisfied the constitutional HUP Test requirements, and then met the statutory Act 55 demands for tax exemption; (b) donated a substantial portion of its services through its CCRC, nursing and personal care facilities, Meals on Wheels Program, and LIFE operations; (c) benefitted a substantial and indefinite class of persons by serving the needs of the elderly; and (d) was properly viewed as a single corporate entity for purposes of determining tax exemption. Further, the Commonwealth Court made it clear that once an organization satisfies the requirements for exemption, the HUP and Act 55 Tests are not to be separately applied to the individual parcels at issue; rather, at that point, the only question is whether those parcels are actually and regularly used in support of the organization's charitable mission. A copy of the Commonwealth Court's opinion can be found here.pdf. Kimber Latsha tried the case for our Firm.
We are pleased to have obtained this successful result for our client, and to be able to advise the provider community of good news on the real estate tax exemption litigation front. If you have questions regarding the taxability of your real property under current exemption standards, please do not hesitate to contact Kimber Latsha or David Marshall to discuss further.