Borough, SEARHC negotiating payment in lieu of property taxes

The borough assembly on Tuesday was to consider a draft agreement for the SouthEast Alaska Regional Health Consortium to make voluntary payments of $45,000 per year for 10 years on property owned by the nonprofit health care provider in town.

The borough had initially asked for $225,000 a year.

SEARHC is not legally required to pay taxes — state law exempts nonprofit religious, charitable, hospital or educational organizations from municipal property taxes — and it has been in negotiations with the borough for several months for a voluntary payment in lieu of taxes (PILT).

SEARHC paid a $331,2...

 

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