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.