Another New Jersey Hospital to Fight for Non-Profit Property Tax Exemption

Written on December 14, 2015 at 04:45 PM

CentraState Healthcare System, located in Freehold Township, is a private, not-for-profit health organization with 285 in-patient beds and 2,600 employees, making it one of western Monmouth County's biggest employers. Five of CentraState’s properties, ranging from the hospital to assisted-living facilities, are exempt from paying property taxes due to its nonprofit status. However, after a state Tax Court judge earlier this year ruled that Morristown Medical Center had so intermingled its nonprofit and for-profit services and finances that it could no longer qualify for a tax exemption under state law, many nonprofit New Jersey hospitals are concerned they will see similar fates.  In this case, CentraState currently pays $1.7 million a year in property taxes, or about 43 percent of its maximum assessment, but could be on the hook for $2 million more.

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Categories: New Jersey, Hospitals, Nonprofit, Real Property, Medical

Atlantic Health to Pay Morristown $15.5M to Settle Property Tax Case

Written on November 17, 2015 at 12:12 PM

Morristown and the Atlantic Health System, owners of the Morristown Medical Center, finally reached a settlement, ending the closely-watched property tax battle dating back to 2006. The likelihood of a settlement increased significantly in June when Tax Court Judge Vito Bianco denied Morristown Medical Center's challenge to overturn the Morristown tax assessor's denial of tax-exempt status for portions of its operations, and ruled that the hospital would be responsible for paying taxes. The judge found that the medical center had so intermingled its nonprofit and for-profit services and finances that it could no longer qualify for a tax exemption under state law.

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Categories: New Jersey, Hospitals, Nonprofit, Real Property, Medical

Property Tax Exemption Ruling Could Have Major Ramifications for Nonprofit Hospitals in New Jersey

Written on June 30, 2015 at 08:34 AM

Issuing a decision that could have major statewide implications for the New Jersey health care industry, a New Jersey Tax Court judge has denied Morristown Medical Center's challenge to overturn the Morristown tax assessor's denial of tax-exempt status for portions of its operations. The ruling highlighted the difficulty in separating the charitable and for-profit activities of hospitals and other organizations, and nonprofit hospitals across New Jersey could be liable for millions of dollars in annual property taxes. The judge found that Morristown Medical Center had so intermingled its nonprofit and for-profit services and finances that it could no longer qualify for a tax exemption under state law.

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Categories: New Jersey, Hospitals, Nonprofit, Real Property

New Jersey Medical Center Property Tax Exemption Case Could Have Statewide Implications

Written on January 22, 2015 at 09:30 AM

Morristown, New Jersey has fired a lawsuit against Morristown Medical Center due to its non-profit status, which exempts the business from having to pay property taxes. The case could have ramifications for the millions of dollars in property tax exemptions that now benefit scores of hospitals statewide.

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Categories: New Jersey, Hospitals, Nonprofit, Real Property

Illinois Hospital Tax Break Costs $10 Million

Written on November 09, 2012 at 08:27 AM

Cash-strapped Illinois is facing $10 million a year in lost revenue caused by a tax-break for investor-owned hospitals. According to the Daily Herald, hospital industry officials say the tax credit recognizes the free care they provide to the uninsured, but some state officials were puzzled about how for-profit hospitals were able to land a major tax break in the intense closed-door negotiations during a statewide financial crisis.

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Categories: Nonprofit, Real Property, Illinois, Health Care, Economy

Boston Property Taxes Show Modest Gain after 2-Year Dip

Written on May 23, 2012 at 07:51 AM

Property tax rolls for the city of Boston, Massachusetts are growing modestly due to new construction and commercial properties previously being tax exempt. According to The Boston Globe, after two years of decline, the increase in tax revenue in the area can largely be attributed to new office towers, the expiration of tax breaks, and the sale of two Catholic hospitals to a for-profit company. Overall, the state of the city's current fiscal health is very positive.

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Categories: Office, Nonprofit, Construction, Real Property, Massachusetts, Economy

Ruling a 'Game-Changer' for Nonprofit Tax Status in Pennsylvania

Written on May 02, 2012 at 11:13 AM

A ruling by the Pennsylvania Supreme Court on a religious organizations school camp claimed that most of the 61-acre spread is taxable because it does not meet all of the criteria previously established for charities in the state. According to the Pittsburgh Post-Gazette, the ruling could mean a return to the 1980's and 1990's when the tax-exempt status of charities in the state of Pennsylvania, hospitals in particular, was regularly challenged by local governments.

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Categories: Pennsylvania, Nonprofit, Real Property

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