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August 20, 2025Earlier this month it was revealed that PeaceHealth owes more than 10 years of back business taxes to the City of Longview. The news came just months after the city faced a budget crisis that led to major cuts and an increase in B&O taxes late last year. Until the city completes an audit of PeaceHealth’s finances, the exact amount owed is unknown, but estimates are in the millions.
Rather than rolling back some of those prior cuts, Mayor Spencer Boudreau said he wants to use the money to issue refund checks to homeowners and to fund long-needed maintenance projects in city parks. He announced his proposal yesterday while speaking at the Lions Club meeting.
In an unscientific Facebook survey he posted, Mayor Boudreau asked residents how they wanted the back taxes used. The top two responses were street improvements/maintenance and rebate checks.
One suggestion not included in the survey but brought up by many was “fix the water.” Longview has long been known for lackluster water quality.
The mistake in collecting B&O taxes from PeaceHealth came from how the city applies exemptions. In-hospital services and income have been exempt from the tax for decades. However, outpatient and non-hospital income are taxable, and it was discovered those payments have not been made in 14 years.


