DECEMBER 5, 2015 LAST UPDATED: SATURDAY, DECEMBER 5, 2015, 1:21 AM
BY LINDY WASHBURN
STAFF WRITER |
New Jersey’s non-profit hospitals may not pay property taxes, but they generate so many jobs, both directly and indirectly, that their economic activity contributes more than $1.4 billion to local and state tax revenues, a report commissioned by the state hospital association said Friday.
The industry is bracing for legislative action that might threaten the current exemption from property taxes in the wake of a precedent-setting Tax Court decision earlier this year involving Morristown Medical Center. State Senate leaders have said they plan to introduce legislation this month to clarify the standards for maintaining a property-tax exemption, to better reflect hospitals’ evolution into complex corporate enterprises since the tax code was written in 1913.
In Bergen and Passaic counties, the value of hospitals’ tax exempt properties is conservatively estimated at more than $700 million.
The report by EY (formerly Ernst & Young), commissioned by the New Jersey Hospital Association, details the economic and community benefits that non-profit hospitals provide. The 63 non-profit hospitals statewide employed 140,000 people, who received $8.3 billion in salaries and paid $674 million in state and local taxes in 2013, the report said. Hospital activities led indirectly to an additional 114,000 jobs statewide, and generated $777 million in additional taxes.
In North Jersey, those hospitals include Hackensack University Medical Center, Holy Name Medical Center in Teaneck, Englewood Hospital and Medical Center, The Valley Hospital in Ridgewood and St. Joseph’s Healthcare System in Passaic County.