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March 21, 2016

Gov. Christie Seeks to Suspend Taxes on Nonprofit Hospitals

New Jersey Gov. Chris Christie proposed a two-year freeze that would stop local governments from collecting property taxes from nonprofit hospitals, The Wall Street Journal reports. He also called for the creation of a commission to draw up revisions to New Jersey state law governing nonprofit tax exemptions.

Last June, the Morristown Medical Center, in New Jersey, paid $15.5 million to its hometown and give up a tax exemption on nearly a fourth of its property as part of a deal to settle a long-running legal dispute in which the town said the hospital operated like a business.

In January, an umbrellla group for 62 nonprofit hospitals in the state backed a plan that would require medical centers to make annual payments for local government services but would preserve their tax exemptions.