Talks are under way to avert a potentially protracted tax battle between non-profit hospitals and the communities that host them, said the prime sponsor of a bill that tried unsuccessfully last month to work out a solution.
Assemblyman John Burzichelli said Tuesday that talks are underway between the New Jersey Hospital Association and the New Jersey League of Municipalities with the aim of helping redraft legislation in the wake of a landmark Tax Court ruling that called into question the property tax exemption of non-profit hospitals.
He said there have been no talks thus far with the administration on the issue, nor does he expect any while Christie is pursuing his bid for the Republican presidential nomination. Christie vetoed the earlier bill in January at the end of the last legislative session.
Burzichelli, D-Gloucester, the chair of the Assembly’s appropriations committee, said he and three other co-sponsors recently resubmitted the bill, but added that the document likely will serve as a “place holder” until a revised bill can be worked out.
“Everybody’s regrouped coming out of the hectic last session,” Burzicelli said of the informal talks.
But he warned if no agreement can be reached, “it’ll be a field day for the tax attorneys.”
The bill stemmed from a state Tax Court decision last summer in which a judge invalidated the non-profit Morristown Medical Center’s property tax exemption. The hospital’s parent company agreed to pay $15.5 million to satisfy back taxes and interest plus make annual payment of about $1 million as tax on the for-profit component of its operations.
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Time to hammer a nail in Valley’s not-for-profit status. They should be paying $4mn+ a year in property taxes in Ridgewood based on the Morristown precedent, but instead they pay their CEO $2mn a year. The fact that NO ONE on our Council understand this is enough to make me conclude they are all focused on their own pet issues and as per the insane garage proposal, could care less about Village tax payers, who they were elected to represent…
Back taxes and current property taxes from Valley would make a significant contribution to the Village’s annual budget and debt reduction, and if anyone on the Council, or the Village Manager and CFO had any clue what they were doing, they would also lead to property tax reductions for all Villagers as well. Too bad no one in Village Hall has the guts to say anything.
“Talks under way in Trenton to avoid tax battle between hospitals, N.J. towns like Ridgewood”
Here fixed that fer ya…
“Talks under way in Trenton to screw NJ towns like Ridgewood”
Let’s make sure no Valley spokesperson is elected to the council this time, and we may have a shot at this.