Should private health clubs receive property tax-exemption?

Overtime, theYMCA has become one of the largest income earning charities in the UnitedStates. Some private health facilities see the YMCA’s exempt status, whichenables them to operate and offer service for less, as an unfair advantage.Consequently, some private health facilities are frustrated because they viewtax-exempt health facilities like the YMCA as competitors, not as charities. 

Recently, theowner of a series of private health facilities in Kansas spent $45,000 incampaigns of senators who would build support in the Legislature for propertytax-exemption applicable to private health facilities statewide. The owner ofthe private health facilities argues that its largest competitor in nearlyevery city home to one of his facilities is a tax-exempt facility. Further, theowner argues it is time to treat all health club facilities the same.

Is thereanything troubling about the competition argument? Are there any concerns withadding private health club businesses to the list of organizations receivingproperty tax-exemption? What impact, if any, would adding private health clubsto the list have on the local tax base?

http://cjonline.com/news/state/2013-03-25/wichita-fitness-club-owner-bets-45k-healthy-tax-break 

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