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St. Luke’s Files Lawsuit on Tax Payment Disagrement with Commission

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BOISE, Idaho (AP) — Two Boise-based health care organizations formed by St. Luke’s Regional Medical Center and the Idaho Elks Rehabilitation Hospital have filed a lawsuit against the Idaho Tax Commission disputing the state agency’s determination they aren’t tax-exempt and owe $400,000.

The Idaho Statesman reports that St. Luke’s-Idaho Elks Rehabilitation Services and the Center for Wound Healing and Hyperbaric Medicine filed the lawsuit in state court last month. The two nonprofit hospitals don’t have to pay a 6 percent sales tax to the state on purchased equipment.

But the state determined in December the two entities they formed are for-profit and owe the state sales tax. Those two groups contend they’re departments of Elks and not a separate entity. A result in the lawsuit isn’t expected for at least six months.

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