Non-Profit Hospitals in New Jersey May be Required to Make Payments

Under legislation that has passed both the New Jersey House and Senate, nonprofit hospitals with certain for-profit operations would keep their property tax exemptions but would be required to pay their host municipality. The legislation requires a payment of $2.50 per day per bed or $250/day for satellite facilities. The legislation awaits Governor Christie’s signature, but it is not clear if he will sign. See the bill text here and here, and additional information from the New Jersey center on nonprofits here. This development follows a recent decision by the New Jersey tax court revoking property tax exemption for a non-profit hospital due to the many for-profit uses of the hospital’s property.

RC (hat tip, Evelyn Brody).