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NC lawmakers take aim at hospitals' prized tax perks

By NC Health News / Charlotte Ledger  
   March 23, 2026

As North Carolina lawmakers search for ways to reduce the tax burden for state residents, they're taking aim at the generous tax breaks the state's nonprofit and public hospitals have long enjoyed. Proposals discussed by a House committee on March 18 would significantly scale back two key tax exemptions. If passed, they would mark one of the most significant efforts in years to reduce hospital tax breaks and could send millions to the state and local governments. Under current law, nonprofit and government hospitals are exempt from property taxes and can receive up to $45 million a year in sales tax refunds. The proposed legislation would cut the property tax break in half, meaning only 50% of a hospital's property would remain tax-exempt. A separate bill would lower the sales tax refund cap from $45 million to $14.2 million.

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