Relating to the exemption from ad valorem taxation of real property leased to certain local public entities for use as a hospital and related health care services.

SB 2517 exempts from ad valorem property taxes the portion of real property leased to government-owned hospitals for hospital operations and related healthcare services. Property owners leasing land to qualifying local public entities (like county or city hospitals) must provide an affidavit confirming the tax exemption and adjust lease payments to reflect the tax savings - either through reduced rent or credits. The exemption applies only to leased property used exclusively for hospital operations, and owners must annually disclose the tax reduction amount to the hospital entity. This law takes effect January 1, 2026, but only if a related constitutional amendment passes.