Court Ruling On Hospital Tax Being Watched In Passaic County

PASSAIC COUNTY, N.J. -- Following a landmark decision by state courts to apply property tax to Morristown Medical Center, communities throughout the state including Paterson, Passaic and Wayne are examining their options to collect taxes from non-profit hospitals, Njspotlight.com reported.

St. Joseph's Regional Medical Center in Paterson is one of the health care institutions that may be faced with paying taxes based on a recent court ruling.
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Mary K. Miraglia

11/23/2015 4:00 a.m.

While communities examine their options and whether to tax hospitals, including St. Joseph's Regional Medical Center and St. Mary's Hospital, the hospitals and their advocates are lobbying the legislature to pass laws protecting them from taxes, Njspotlight.com said.

Judge Vito Bianco found in the Morristown decision that the nonprofit hospital was no longer the charitable organization it was when it was exempted from property taxes, Njspotlight said. He said based on trial evidence, nearly all the hospital was taxable because for-profit services and finances were intermingled with nonprofit functions, the story said.

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