RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION ATTESTING TO THE FEDERAL TAX EXEMPT STATUS OF SAN MATEO COUNTY AND SAN MATEO MEDICAL CENTER, AS SET FORTH UNDER SECTION 115 OF THE INTERNAL REVENUE CODE

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, the County of San Mateo, State of California is a political subdivision of the State of California and therefore exempt from federal income taxation under Section 115 of the Internal Revenue Code, which provides, in pertinent part, that gross income does not include “income derived from . . . the exercise of any essential governmental function and accruing to a State or any political subdivision thereof;” and

WHEREAS, Chapter 2.64 of the San Mateo County Ordinance Code provides that the San Mateo Medical Center (“SMMC”) is a County-owned and operated hospital which is a department of the County, and which falls under the direct control of the Board of Supervisors of the County of San Mateo; and

WHEREAS, the SMMC performs essential governmental functions, including the provision of medical care and services to indigent residents of the County of San Mateo, and is therefore tax exempt under Section 115 of the Internal Revenue Code and eligible for supplemental reimbursement for outpatient hospital services pursuant to Assembly Bill 915; and

WHEREAS, the Centers for Medicare and Medicaid Services and the California Department of Health Services have requested that the County clarify, by way of a resolution of this Board, the governmental and federal tax-exempt status of the SMMC; and

NOW, THEREFORE, IT IS HEREBY DECLARED that (1) the SMMC is a department of the County of San Mateo, which is, in turn, a subdivision of the State of California, (2) the SMMC performs essential governmental functions, including the provision of medical services to indigent residents of the County, and (3) income accruing to the SMMC is therefore tax exempt pursuant to Section 115 of the Internal Revenue Code. The Clerk of this Board is directed to forward copies of this resolution, as appropriate, to governmental officials.

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