NJ Non-profit Hospitals Get Tax Break

▤ Summary

A 2021 law drafted as a compromise between tax-exempt non-profit hospitals and the NJ municipalities in which they’re located is being challenged by a lawsuit. A 2015 court ruling found that Morristown Medical Center was liable for taxes as a result of operating in large part as a for-profit organization. Legislation voted on last December requires the facilities to make payments for “community service” to their host municipalities, but maintains their tax-exempt status. Governor Phil Murphy is named as the defendant, and the suit aims to block enforcement and eventually void the law. Consumer activist organization New Jersey Citizen Action filed a petition to join the suit.

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