The Longview City Council voted 4-3 Tuesday night to repeal PeaceHealth St. John Medical Center’s decades-long exemption from business taxes, meaning the hospital could be paying an estimated $376,000 annually to the city.
The vote broke from the council’s usual voting blocks, with Councilmember MaryAlice Wallis joining Councilmembers Kalei LaFave, Keith Young and Mayor Spencer Boudreau in support. Councilmembers Angie Wean and Ruth Kendall joined Erik Halvorson in voting no.
Prior to the vote, PeaceHealth leadership spoke to the council, mentioning that the hospital provides millions in charity care to the community and that healthcare costs are rapidly increasing. They also said they want to work with the city. The exemption applied to inpatient hospital care and services because the hospital is a nonprofit.
This is separate from the 14 years of missing business taxes recently discovered for PeaceHealth’s non-exempt outpatient and non-hospital income, money the hospital will be required to pay back. Councilmember Halvorson said the combination of both issues could damage the city’s relationship with PeaceHealth.
Councilmembers in support of the repeal said the change was needed given the city’s ongoing budget issues.
The next step is for city staff to draft an ordinance, which will come back in October for a public hearing and final vote. If passed, the new tax would take effect Jan. 1, 2026.
