(ST. JOSEPH, Mo.) Mosaic Life Care issued a statement Wednesday about its decision to make some of its locations tax-exempt.
The health-care provider will adjust the tax status for some of their properties as 501(c) 3s. As a tax-exempt organization, Mosaic Life Care will be eligible for tax breaks and benefits on state and federal income taxes and city and county property taxes.
Dwain Stilson, the Chief Financial Officer of Mosaic Life Care issued a statement Wednesday about the decision.
It reads in part, “Mosaic Life Care faces unique challenges specific to our community. For decades, Mosaic paid a significant amount in property taxes voluntarily. With the changing health-care climate, Mosaic made the decision to invest these funds in expansion and upgrades to our main hospital campus and our rural hospitals and clinics. ”
The statement goes on to say the investments will benefit the community and that the health-care provider is still committed to contributing to area schools and wellness programs.
The news of the health-care provider’s plans came during a St. Joseph School Board meeting Tuesday evening. Superintendent Doug Van Zyl told board members Mosaic officials notified the school district that the tax status change was coming.
Van Zyl said that Mosaic’s administration warned school officials of the change so that the district was prepared to lose out on some projected revenue.
The Superintendent told the School Board that Mosaic plans to take two buildings off of the tax rolls next year and that St. Joseph schools will have to make a $145,000 budget adjustment. The following year, the health-care group plans to make an additional five properties tax-exempt leading to a $ .5 million tax revenue loss for the district, Van Zyl said.
The loss will not create a massive hole in the St. Joseph School District's $120 million dollar budget but it will require adjustments.
“Any time you lose tax dollars it’s a challenge,” the superintendent said. “The benefit to us is that we do have a great partnership with them and they are trying to look forward to how they can maybe replenish some of those dollars.”
Officials at Mosaic and the school district said they are working together to find other ways the health-care provider can support students in other ways.
Stilson’s statement cites examples of the strong partnership between Mosaic and SJSD including the Anti-Bullying Campaign, paying for clinical nursing support, the Community Clinic at Carden Park Elementary School.
“We look forward to working with the district as we strive to meet the needs of our community,” Stilson said in his statement.
KQ2 reached out to Mosaic Life Care to find out what properties will become tax exempt and when that change will happen. The details of those properties will shed light on whether other entities will be affected.
The full statement from Mosaic is provided below:
“Mosaic Life Care faces unique challenges specific to our community. For decades, Mosaic paid a significant amount in property taxes voluntarily. With the changing health-care climate, Mosaic made the decision to invest these funds in expansion and upgrades to our main hospital campus and our rural hospitals and clinics. These improvements will serve our communities for years to come, while we continue to invest in educational and wellness programs designed to improve the health status of our residents.
Mosaic is honored to be a significant partner for the St. Joseph School District. Programs such as the 4th Grade Challenge, funding an Anti-Bullying Campaign, providing mental health awareness programs and financing clinical nursing support are just a few examples of how Mosaic works side-by-side with the school district. Through innovative programs such as the Community Clinic at Carden Park Elementary School, Mosaic constantly looks for ways to increase access to health care for our residents. We look forward to working with the district as we strive to meet the needs of our community.”
--Dwain Stilson, Chief Financial Officer, Mosaic Life Care