The Georgia Bulletin

Fri, May 16, 2008


What I Have Seen and Heard - Archbishop Gregory's Weekly Column

Print Issue: December 2, 1971

Local Catholic Hospitals Face Quarter Million In Taxes

A strong possibility exists that the three Catholic hospitals of the archdiocese may be hit for a total of almost $300,000 in new property taxes in 1972, it was revealed last week.

The Georgia State Department of Revenue has authorized county governments to collect property taxes on 25 private hospitals around the state. According to present estimates, St. Joseph's Infirmary of Atlanta would be dunned for $160,000 per year; Holy Family of Atlanta $80,000; and St. Mary's of Athens $40,000.

Officials of the three hospitals said that hospital rates would have to rise sharply to meet the new tax burden -- probably about $2.00 per day per bed.

The hospitals have never paid property taxes before. But a statewide referendum on the matter last November went against the hospitals and laid them open to the new taxes. Ed Fechtel, administrator of St. Mary's Hospital, said that the opposition of Atlanta newspapers and television stations may have tipped the scales.

Mr. Fechtel added, "We are a non-profit charitable organization, but the state is now apparently taking the position that we're not."

St. Mary's in Athens (Clarke County) has not actually yet been billed by county officials, but the two Atlanta hospitals, both located in Fulton County, have been.

For the present, they are refusing to pay.

Charles Burge, an official of St. Joseph's Infirmary, pointed out that the new tax plan is discriminatory, for it exempts hospitals run by a governmental authority. Thus, Northside, Cobb General, and South Fulton Hospitals are exempt, whereas privately-run hospitals such as Piedmont, Crawford Long, and Georgia Baptist, as well as the three Catholic hospitals, will have to pay. "Yet we're all just in business to do a service, not to make money," Burge said.

The private hospitals are fighting the property tax collectively through the Georgia Hospital Association. The Association plans to go before the state legislature in January, asking for the tax question to be placed before the electorate again next November. Prospects for favorable action from the legislature are regarded as good. But an uphill fight would then have to be waged to reverse the unfavorable result of the 1970 vote in the 1972 general election.

Asked what an individual person might do to help the hospitals fight the proposed tax, Sister Brian, administrator of St. Joseph's said, "Get ready to vote for the amendment next November!"