Wesley Medical Center v. McCain

The opinion of the court was delivered by

Herd, J.:

This is an appeal by Wesley Medical Center and St. Joseph Medical Center, Inc. from a judgment of the Sedgwick County District Court affirming the decision of the Secretary of Human Resources assessing the appellants’ 1975 unemployment contribution rates at 3.6% of wages paid.

The facts are not in dispute. Both plaintiff-appellants are hospitals located in Wichita, Kansas, and are non-profit organizations described in section 501(a) of the U.S. Internal Revenue Code, 1954, and as such are exempt from income taxes.

The plaintiffs became liable…