N.J. Towns Line Up to Challenge Hospitals’ Tax Exemptions

A dozen municipalities across New Jersey are seeking to collect taxes from nonprofit hospitals in the wake of a court ruling last year that resulted in one town securing a $15.5 million tax payment, NJ Advance Media reports.

The lawyer who represented Morristown, N.J., in its successful challenge to Morristown Medical Center’s tax break has brought similar cases on behalf of seven towns, and a spokeswoman for the New Jersey Hospital Association said she is aware of at least five more municipalities that have filed tax appeals against hospitals. A state Tax Court judge ruled in June that the Morristown medical facility had so intertwined nonprofit and commercial operations that it was liable for local property taxes.