Source: Philadelphia Inquirer
New legislation in New Jersey promises to preserve nonprofit hospitals’ exemption from paying property taxes, even if they contract with for-profit doctors to use their facilities.
The bill directly responds to a tax court ruling from June that found a nonprofit hospital in Morris County to be ineligible for tax exemption between 2006 and 2008, because it used its property for a “profit-making purpose.”
The bill would also include a requirement for these hospitals to pay an annual community service fee to their local municipality “to cover public safety costs, such as police and firefighter transport,” reports the Inquirer. However, under the bill, hospitals can apply to opt-out of paying this fee if they qualify as “financially distressed.”
Read the full story at: Philadelphia Inquirer