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Ridgewood One of Many New Jersey Towns to Sue Hospitals Over Property Taxes

Valley_Hospital_theridgewoodblog
August 20,2016
the staff of the Ridgewood blog

Ridgewood NJ, In April Ridgewood joined over two dozen other municipalities, including Teaneck, Englewood, Wayne, Paterson, Pequannock and North Bergen challenging the tax exempt status of their local hospital

Like Ridgewood many of these municipalities are looking for new sources of cash to lower their high property taxes, local officials have now filed tax appeals challenging the tax-exempt status of 35 nonprofit hospitals according to NJ Advance Media for NJ.com .

The litigation continues to gain momentum in response to last year’s precedent-setting tax court ruling and settlement which required Morristown Medical Center to pay Morristown $15.5 million in lieu of property taxes. The judge in that case found the hospital operated like a for-profit entity and should share the cost of public safety and other municipal services.

While the Morristown case took 5 years to see it through ,so far two of the 35 cases have been settled already, resulting in additional revenue for the city of Elizabeth and Edison Township.

The settlements have already paid off for local taxpayers.The property tax rate has declined in Morristown by 2 cents this year, as a direct result of the “historic” agreement reached with Morristown Medical Center’s parent company, Atlantic Health Systems.

Ridgewood has quietly pursued Valley Hospital on the same grounds .It has been often repeated that Valley’s current 15 1/2-acre main campus would owe about $4.5 million in taxes if it were fully assessed. That is before the major increase in size by the proposed renovation double its size .

The N.J. Hospital Association says the tax-exempt status of these hospitals have been challenged:

Clara Maass Medical Center (Belleville)
Jersey City Medical Center (Jersey City)
Monmouth Medical Center (Long Branch)
Monmouth Medical Center Southern Campus (Lakewood)
Saint Barnabas Medical Center (Livingston)
Newark Beth Israel Medical Center (Newark)
Holy Name Medical Center (Teaneck)
Englewood Hospital and Medical Center (Englewood)
Hunterdon Medical Center (Raritan Township)
Bayshore Community Hospital (Holmdel)
Hackensack UMC Palisades (North Bergen)
Jersey Shore University Medical Center (Neptune)
Raritan Bay Medical Center (Old Bridge)
Raritan Bay Medical Center (Perth Amboy)
Riverview Medical Center (Red Bank)
Chilton Medical Center (Pequannock)
Overlook Medical Center (Summit)
Newton Memorial Hospital (Newton)
Robert Wood Johnson University Hospital (Rahway)
Robert Wood Johnson University Hospital (New Brunswick)
Robert Wood Johnson University Hospital Somerset (Somerville)
Robert Wood Johnson University Hospital Hamilton (Hamilton)
Trinitas Regional Medical Center (Elizabeth)
CentraState Medical Center (Freehold)
Virtua Memorial Hospital (Moorestown)
St. Joseph’s Regional Medical Center (Paterson)
St. Joseph’s Hospital Wayne (Wayne)
JFK Health (Edison)
Shore Memorial Hospital (Somers Point)
The Valley Hospital (Ridgewood)
Capital Health (Hopewell)
Kennedy University Hospital (Stratford)
AtlantiCare Regional Medical Center City Campus (Atlantic City)
AtlantiCare Regional Medical Center Mainland Campus (Galloway)
Princeton Healthcare System (Plainsboro & Princeton)