By Marie Mulvenna

Three hospitals in the archdiocese, which are under Catholic auspices, are breathing a heavy sigh of relief following the overwhelming passage of Amendment 10 in last month’s general election. The statewide vote on the amendment, which involves exempting hospitals from ad valorem taxation, was a clear cut “yes” in the voting booth with 630,919 voting in support of the amendment and 197,644 voting against it, a 76.3% victory.

The amendment itself does not prohibit ad valorem taxation, but does clearly authorize the state’s General Assembly to pass the appropriate legislation making the hospitals exempt. The exemption from the tax in question would be based on the fact that the hospitals are non-profit, have no stockholders or profit which is private person and are subject to the laws of Georgia regulating charitable corporations.

The existence of the amendment of the November ballot was the result of rather vague section of the Georgia state constitution concerning such hospitals, as well as the feeling that some cities and counties in search of additional tax revenue would latch onto the hospitals as a new source of income. As indicated in a BULLETIN editorial of October 12, all other 49 states in the country grant non-profit hospitals legitimate tax exemptions. The imposition of taxes on the three hospitals functioning under Catholic auspices was viewed as a severe threat to present hospital rates which hospital officials made clear would have no place to go but up.

Reaction from local hospital officials to the vote was one of elation. Charles Burge, assistant administrator at St. Joseph’s Infirmary, said: “We are delighted with the overwhelming response and want to thank everyone who came out to help us. We very much appreciate the support of the archdiocese and all those who worked so hard for the passage of this important amendment.”

At St. Mary’s Hospital in Athens, Edward Fechtel, administrator, said they were “really pleased with the results,” adding the vote for Amendment 10 was four to one in Clark County.

“We look forward now to the needed action by the state legislature, acting in such a manner that it will keep this exemption equal to the hospitals. We’re certainly happy about the turnout and the results. The response from the voter was excellent and we hope the legislation will be forthcoming.”

Arnett Mumford, administrator at Holy Family Hospital, viewed reaction there as favorable and indicated this feeling was shared by other hospital administrators. Mumford did indicate some misgivings that the vote on Amendment 10 was possibly not the end of the matter, pointing out that there might conceivably be a legal matter arising concerning past years’ taxes, which could represent a substantial amount of money for the hospitals.

In the future, however, the hospitals will almost certainly be granted a tax exemption because of the passage of Amendment 10.