Nonprofit Hospitals Tax Exemption.

This bill modifies tax exemptions for nonprofit hospitals in North Carolina by linking property tax relief directly to the cost of charity care provided to low-income patients. Under the new rules, a hospital's property tax exemption is calculated based on the actual cost of services given to uninsured or underinsured individuals with family incomes at or below 300% of the federal poverty level. Additionally, the legislation expands sales tax refunds for nonprofit hospitals, allowing them to recover taxes on over-the-counter drugs and capping the total refund at the lesser of a fixed dollar amount or the hospital's verified charity care costs. These changes are designed to ensure that tax benefits are tied to specific charitable activities rather than general operations. The provisions will take effect for tax years beginning on or after July 1, 2027.