the staff of the Ridgewood blog
Ridgewood NJ, a new legal battle is brewing in Ridgewood as Valley Hospital has filed a major tax appeal against the Village of Ridgewood, targeting the Payment In Lieu Of Taxes (PILOT) agreement for its property at 223 N. Van Dien Avenue. The appeal challenges the 2025 tax year assessment, potentially impacting the village’s proposed $64.8 million municipal budget.
Dispute Over Property Use and Tax Exemption
Valley Hospital argues that its PILOT status should remain intact, but the Village of Ridgewood contends otherwise. According to village officials, the property is no longer fully exempt from taxation because parts of it are being used by for-profit medical providers for purposes unrelated to direct health care services provided by the hospital itself.
This, the village argues, disqualifies the property from full tax exemption under New Jersey law.
Ridgewood Budget Could Be Impacted
The Ridgewood Village Council recently unveiled its proposed 2025 budget, which relies heavily on PILOT revenues from Valley Hospital. Should the appeal succeed and the property be reassessed, the village could face a revenue shortfall that might affect municipal services or require other budget adjustments.
What is a PILOT Agreement?
A Payment in Lieu of Taxes (PILOT) is a financial agreement between a municipality and a tax-exempt organization, like a hospital or university. Instead of paying standard property taxes, the entity agrees to make annual payments that compensate the local government for lost tax revenue. Many large hospitals in New Jersey, including Hackensack University Medical Center (HUMC), currently participate in similar programs with their towns.
What’s Next?
As the legal appeal process unfolds, Ridgewood residents and officials will be closely watching how this dispute might affect local taxes, services, and future PILOT agreements. If the court rules in favor of Valley Hospital, it could set a precedent for how New Jersey towns assess and structure similar agreements going forward.
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In dollars, what are we talking about here? How much in taxes?
They currently owe $5.4 million in unpaid billed property taxes.
This is what Ridgewood Village Manager Keith Kazmark has to say about The Valley’s failure to pay billed property taxes:
“Correct, Valley has not paid their taxes due as of yet. If Valley does not pay, their property like other delinquent taxpayers will go to tax sale.”
Betting $100 that The Valley’s property NEVER goes to a tax lien sale. That would amount to political suicide. Ain’t happening; no way in the world.
4M for 2024 and 4M for 2025.