A years-long dispute between Dartmouth Health and the City of Concord over whether the company qualifies for a tax-exemption has ended with an arrangement that splits the middle.
The Upper Valley-based healthcare company has operated a facility at the corner of Pleasant Street and Langley Parkway, offering primary care, lab work and other services since โat least 2005,โ a legal filing states.
Tax records indicate that Dartmouth has paid a full tax bill on these properties in previous years. In 2024 and again this year, the non-profit healthcare company applied for tax-exempt status with the city and was denied. Dartmouth then sued in consecutive lawsuits appealing the rejections.
The litigation notes Dartmouth Healthโs non-profit, 501(c)(3) designation and describes its commitment to โthe purpose of providing a full range of medical services to treat sick and disabled people regardless of their financial or social circumstances.โ
The clinic sits across the street from Concord Hospitalโs central campus, and its webpage states the two facilities share โa close working relationship.โ
Under a payment-in-lieu-of-taxes agreement, or PILOT, ending that litigation, Dartmouth is recognized by the city as a charitable organization and will pay half of its would-be tax obligation.
During case discovery, the city โdetermined that they would likely qualify,โ said City Solicitor John Conforti, โand we negotiated this PILOT as a resolution of the case.โ
The hospital group is pleased with the resolution, said Audra Burns Dartmouth Healthโs senior manager of media relations.
โOur tax-exempt status allows us to direct resources toward patient care, community health programs, and services that would otherwise not be financially sustainable,โ Burns said in a written statement. โItโs an essential part of how we fulfill our mission to provide high quality accessible care to the Concord community and beyond.โ
For each of the last two years, this comes to a difference of around $150,000 in tax revenue โ that is to say, itโs $150,000 less than the city would have been receiving annually from Dartmouth under the status quo but also $150,000 more than would go into city coffers if no taxes were paid on that facility.
With an assessed value of roughly $10.7 million for the properties in 2025 and with a Concord tax rate of $29.11, a full bill on the clinic for this year would have been about $310,000. Under the new tax agreement, Dartmouth will pay about $155,000, a city report states.
The agreement spans seven years, ending in 2031, and was approved by the Concord City Council on Dec. 8.
For reference, Concord Hospitalโs main medical centers in the city are tax-exempt and have no agreements for payments in lieu of taxes. The hospital company pays some taxes on properties that it leases to tax-liable entities, such as Granite Ledges.
Editorโs note: This story was updated to include a statement from Dartmouth Health.
