Well Mr. Kidd it seems we are about to get the answer to our question concerning the taxes owed by Atrium Medical Center.

Hospital awaits ruling on tax status

Atrium Medical Center would owe $9.5 million if request is denied.

By http://www.middletownjournal.com/services/staff/380149.html - Ben Sutherly , Staff Writer 1:27 AM Monday, October 3, 2011
By Ben Sutherly
Staff Writer

MIDDLETOWN — Atrium Medical Center has accrued nearly $9.5 million in delinquent real estate property taxes in Warren County since 2008 as it awaits a state ruling on its request for real estate tax exemptions.

Atrium has been advised by its legal counsel that it does not need to pay those taxes while the tax-exempt status is being determined by state officials, hospital spokeswoman Wendy Parks said.

Hospital officials anticipate tax exemptions will be approved for the parcels in question, Parks said. But she added the hospital “would be prepared to pay whatever we owe” if tax-exempt status is turned down for some or all parcels.

The parcels in question include the main hospital campus, the Bidwell surgery center property, Dayton Children’s specialty care center property, and an undevelopable tract that could be used for storm water detention in the future.

Atrium Medical Center opened in December 2007.

Most entities seeking tax exemptions do not pay taxes until the state’s tax equalization division makes a decision, said Gary Gudmundson, spokesman for the Ohio Department of Taxation.

Such tax applications are typically approved. State tax equalization officials approved 82 percent of applications in 2009, 83 percent in 2010, and 81 percent so far in 2011.

Applicants are not required to keep  money in escrow until a decision is made, Gudmundson said.

“They apply presuming they’re not subject to tax,” he said.

About 80 percent of Atrium’s $9.5 million in delinquent taxes would have  gone to the Franklin City Schools, said Matt Nolan, Warren County deputy auditor. The schools treasurer could not be reached for comment Thursday.

Warren County collects roughly $300 million in real estate taxes annually.

Contact this reporter at (937) 225-7457 or bsutherly@coxohio.com