BY LINDY WASHBURN
STAFF WRITER |
THE RECORD
Municipalities may try to levy property taxes against non-profit hospitals now that Governor Christie has vetoed legislation that enshrined the property tax exemption of the non-profits and instead would have required them to pay a community-service fee.
Advocates of the measure said they planned to return this session with a bill that satisfies the governor, while protecting hospitals from costly lawsuits and compensating local governments for some of the services they provide.
State Senate President Stephen Sweeney said he was “extremely disappointed” with the governor’s action, which he attributed to the governor’s “personal political ambitions.” By assessing a fee on non-profit institutions, the measure might have been construed as a new tax by Christie’s conservative competitors for the Republican presidential nomination, Democrats said.
The measure followed last summer’s Tax Court decision that invalidated the property-tax exemption enjoyed by non-profit Morristown Medical Center. The hospital’s parent company, Atlantic Health System, eventually agreed to pay $15.5 million to satisfy back taxes and interest, and will make future payments of about $1 million annually as tax on the for-profit part of its operations.
Non-profit hospitals across the state have been concerned that they, too, will face costly litigation — and big tax bills. In a historic shift, those hospitals had volunteered to make the “community contributions” outlined by the measure that went before the governor.
“We are disappointed with the pocket veto,” said Betsy Ryan, president and CEO of the state’s largest hospital association.
But critics had considered the measure lenient on the hospitals. Several local governments had expressed concern that the measure shortchanged local governments. Its $2.50 per-bed, per-day fee was far too little, they said. The Valley Hospital in Ridgewood, for example, would have been assessed about $407,000 annually, less than one-tenth of the potential property taxes on its full 15.5-acre property.
Some municipalities already are in “fact-finding mode” and are requesting information from their hospitals about their for-profit and non-profit operations, said Michael Cerra, vice president of the New Jersey League of Municipalities, which opposed the measure. “No one is looking to put anyone out of business,” he said.
https://www.northjersey.com/news/nj-state-news/veto-leaves-hospitals-open-to-lawsuits-1.1495249
One wonders how much money Valley spent in trying to get this bill passed into law that Christie vetoed.
Yes Valley is behind all evil matters.
One wonders whether the VC will now pursue their fiduciary obligation to the residents of Ridgewood by pursuing what the article suggests is up to $4MM in annual value. Gwen might take the issue up with the Ladies Auxiliary.
The current VC will not touch this issue because of the pending lawsuit.
There is simply no reason why Valley should not pay real estate taxes. Non-profit’s pay their executives HUGE salaries …..indeed far more that For-Profit hospitals of similar size.