Malloy, Hospitals at Odds Over Local Tax Bill

Gov. Dannel Malloy is defending his proposal to place new limits on which hospital facilities are exempt from local property taxes.

The Democrat's bill would provide property tax exempt-status to nonprofit hospitals that operate in the same location as emergency departments or federally qualified health centers. Cities and towns where such facilities are located would receive partial state reimbursement for the lost tax revenue.

If the bill passes, the Connecticut Hospital Association said Connecticut would be the only state to levy property taxes on hospital property not part of a main hospital campus. The association contends this proposal would place a further financial burden on hospitals.

Malloy said Monday the hospitals "changed the paradigm" and have been buying private practices, creating a revenue loss for cities and towns.