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Morristown hospital loses property tax court case; judge says facility does not meet non-profit status

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By Tim Darragh | NJ Advance Media for NJ.com
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on June 26, 2015 at 7:50 PM

Morristown Medical Center should pay property taxes on virtually all of its 40-acre property in town, a tax court judge ruled Friday in a decision closely watched by other hospitals across New Jersey.

Tax Court Judge Vito Bianco ruled that the hospital failed to meet the legal test that it operated as a non-profit, charitable organization for the tax years 2006 through 2008. Only the auditorium, fitness center and the visitors’ garage should not be assessed for property taxes, he said.

The decision, the hospital’s attorneys have said previously, could cost it $2.5 million to $3 million a year. The ruling applies only to the medical center’s property taxes, not to its federal tax status as a non-profit.

Other non-profits in New Jersey, especially hospitals and universities, have been concerned about the case, fearing that a ruling for the town – which also is in court for property taxes from the hospital for 2009 through 2015 — could encourage host municipalities to challenge their property tax exemptions as well.

https://www.nj.com/morris/index.ssf/2015/06/morristown_medical_center_loses_tax_case_raising_f.html#incart_river

13 thoughts on “Morristown hospital loses property tax court case; judge says facility does not meet non-profit status

  1. It’s about time !!!

  2. Well, well, well. The chickens have come home to roost. How much does Audrey Meyers get paid? Sounds like for profit to me.

  3. Valley’s next

  4. May Valley have the same fate. PAY UP.

  5. Crikey…this is just what Valley did not want to hear…and what we’ve been clamoring about for years based on Valley’s behavior. Ridgewood should use this ruling as leverage to convince Valley to drop it’s current lawsuit and adjust it’s growth plans to something reasonable based on its footprint in a heavily residential area.

  6. Checkmate!

  7. Can you imagine how much this town would have benefited from Valley paying even a quarter of what they could have over the years ? Instead, they’ve decided to bite the hand that has fed them and file suit.
    Two words: greed and arrogance.

  8. It would be great to see Ms. Hauck use her relationships and actually stand up against Valley Hospital and ask them to 1) drop their lawsuit; and 2) pay for the municipal services they consume like police, fire and snow removal. Or suggest that we use the Morristown Medical Center court ruling that it should pay property taxes on virtually all of its property in town, and go after Valley to pay property taxes in Ridgewood on ALL of their property. How can they argue they are a NOT-for-profit when they are paying their CEO $2 million a year and expanding in an arms race to become a “hospital system” with other regional hospitals? I would have a much stronger view of Ms. Hauck’s independence if she supported either of the above ideas without any form of quid pro quo on Valley’s expansion plans in Ridgewood

  9. Are you kidding? If anything, Ms. Hauck is probably advising them on how to make sure it doesn’t happen. With no background or interest in public service except raising money for Valley, and no knowledge of how it works or most of the issues, she agreed (not decided–agreed–was invited–I know this) to run for council solely to help Valley–I would be a lot on that–in exchange for being the third vote for anything Aronsohn wanted. And she had to agree not to attend the social functions she had enjoyed for many years. This is conjecture, not inside information. It just makes sense.

  10. …I would BET a lot on that. Sorry.

  11. The village provides NO snow removal for valley…get your facts stright

  12. 11:20, should Valley pay for the Municipal services they consume or NOT? They plow all of the Village streets in the area coming to and from Valley? Get your facts straight.

  13. Based on assessed property values, Valley should be paying over $4 mm in property taxes which they get for free due to their not-for-profit status. Anyone on the Council paying attention to this Morristown case? You should be. Valley pays their CEO $2mn per year and yet can’t seem to pay for any of the municipal services they consume? And they’re suing us? Time to go after them.

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