BY NICHOLAS PUGLIESE
STAFF WRITER |
THE RECORD
North Bergen is poised to file a lawsuit challenging the tax exempt status of Palisades General Medical Center and The Harborage nursing home, whose 8.6-acre campus overlooking the Hudson River is some of the most expensive real estate in the world.
The filing, which the township’s Board of Commissioners approved Wednesday, comes on the heels of a precedent-setting Tax Court decision last summer in which a judge ruled that the non-profit Morristown Medical Center was not entitled to its property-tax exemption because its operations were little different from those of a for-profit company.
The ruling, and a subsequent $15.5 million settlement between Morristown and the hospital, raised the specter of a flood of legal challenges by cash-strapped municipalities seeking property taxes or payments in lieu of taxes from the 63 non-profit hospitals statewide. The state Legislature passed a bill in early January that would have circumvented more lawsuits by requiring non-profit hospitals to contribute financially to their hometowns based on the number of beds they have, but Gov. Christie vetoed it later that month without explanation.
