Northern Light Health is suing Brewer to reinstate its tax-exempt status at sites in the city.
A complaint the health care provider filed in Penobscot County Superior Court on Friday asks a judge to rule that Northern Light facilities in Brewer are eligible for property tax exemption despite third-party employees working there.
Brewer’s assessor ruled June 23 that portions of the Lafayette Family Cancer Institute are no longer eligible for exemption because contracted workers, such as private practice oncologists and Quest Diagnostics lab employees, provide services to cancer patients, Northern Light said.
While hospital systems are among the major employers in regions across Maine and own tens of millions of dollars in property, they are nonprofits that qualify for tax exemptions. Health care providers say they rely on them to provide affordable care. It is not uncommon for them to contract with third-party providers to offer a variety of services.
The assessor’s ruling is “contrary to public policy and well-established legal precedent in Maine, will add to the cost of health care and will be viewed with concern by the entire Maine charitable and nonprofit community,” Northern Light spokesperson Suzanne Spruce said.
The assessor also challenged the tax-exempt status of the Cianchette Building because a small group of Optum employees work there, Northern Light said. Northern Light’s home office, the Lafayette Family Cancer Institute and the Cianchette Building are located on Whiting Hill Road in Brewer.
“After substantive discussions with the Brewer assessor did not lead to a resolution of this matter, we were left with no choice but to resolve this through the court system,” Spruce said.
Brewer City Manager Stephen Bost was not immediately available to comment Friday.
