Working with a 120-bed skilled nursing facility in Ohio that's been paying full commercial rates to AEP for two years. Applied for nonprofit tax exemption but got denied because they have a for-profit management company. Anyone successfully appealed similar situations?
Nursing home tax exemption denied - help needed
James - this is tricky territory. The key is proving the facility itself maintains nonprofit status even with contracted management. Need documentation showing the management fees don't constitute profit-sharing with the nonprofit entity.
I've seen this go both ways depending on the state and utility. The management contract structure is critical. If the nonprofit maintains operational control and the management company is just providing services, you have a better case. Worth consulting with a utility attorney who specializes in tax exemption cases.
Thanks Randy and Darrell. Found a similar case in Pennsylvania that succeeded. Going to restructure the appeal focusing on operational control rather than management structure. Will update when we hear back.