News Flash

Home

Posted on: September 21, 2020

Hospital Property Tax Bill Advances

Yesterday, the Assembly Appropriations Committee advanced with committee amendments A-1135, a bill which the League opposes. A-1135 seeks to address the ongoing issue of property tax exemptions for nonprofit hospitals with on-site for-profit medical providers. The issue stems from a tax court decision which brought to light how the business model for modern hospitals does not comport with the original public policy reasons for exempting non-profit hospitals from property taxes.

While the League is supportive of a legislative solution to this issue and continues to work with the sponsors on a solution, A-1135 is not a proper solution. As a threshold matter, the bill sets up an unconstitutional tax exemption. Notwithstanding the constitutional issues, A-1135 poses other concerns as it attempts to create a Community Service Contribution (CSC) fee which would be paid by hospitals organized as non-profits in lieu of any property tax. The CSC fee is calculated based on the amount of licensed acute-care beds in a hospital which, based on industry trends, would mean the fee would be reduced each year as hospitals move away from these types of beds.

The contemplated CSC fee would be far smaller than any property tax bill to which these hospitals would otherwise be subject, and would effectively serve as a subsidy to an otherwise profitable industry paid for by all other property taxpayers of host communities.

We do welcome some of the committee amendments made to A-1135, including the removal of provisions of the bill that would have voided the settlements and agreements some host municipalities have already made with hospitals in their communities. The amendments also remove a section of the bill as introduced that would have required payments already made under negotiated agreements to municipalities to be reimbursed to hospitals. However, even with these changes, the League remains opposed to A-1135.

We anticipate the bill will be brought to the full Assembly for a vote. We urge our members, especially those hosting non-profit hospitals, to review A-1135 and to reach out to your legislators expressing how this legislation would impact your community and your taxpayers.

Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481 x137.

Facebook Twitter Email

Other News in Home

Celebrate Local Government Week!

Posted on: April 20, 2021

Week of March 29 COVID-19 Update

Posted on: April 1, 2021

Cannabis Legalization Deadlines

Posted on: March 26, 2021

Local Part PERS Legislation Advances

Posted on: March 26, 2021

Week of March 22: COVID-19 Update

Posted on: March 26, 2021

Legislative Preview: Week of March 15

Posted on: March 15, 2021

Cannabis Briefing March 18

Posted on: March 15, 2021

Week of March 8: COVID Update

Posted on: March 15, 2021

American Rescue Plan Overview Webinar

Posted on: March 10, 2021

Wear Your Pearls for WIMG Movie Night

Posted on: March 10, 2021

Legislative Preview: Week of March 8

Posted on: March 9, 2021

Week of Feb. 22: COVID-19 Weekly Update

Posted on: February 26, 2021

Feb. 26, 2022 Cannabis Update

Posted on: February 26, 2021

FY 2021 State Budget-Municipal Interest

Posted on: February 24, 2021

Legislature Preview: Week of February 22

Posted on: February 22, 2021

Gov. Murphy Signs Legalization Legislation

Posted on: February 22, 2021

LEAP Challenge Grant Deadline Approaching

Posted on: February 16, 2021

Expanded Earned Income Tax Credit Program

Posted on: February 16, 2021

Amended Shared Service Bill S-1 Advances

Posted on: February 16, 2021

Week of February 8: COVID-19 Update

Posted on: February 16, 2021

Congressional Activity on SALT Deduction

Posted on: February 1, 2021

Marijuana Legalization Update

Posted on: February 1, 2021

Week of January 24: Covid-19 Update

Posted on: February 1, 2021

Week of January 18: COVID-19 Update

Posted on: January 22, 2021

COVID-19 Update: Week of January 4

Posted on: January 11, 2021

Governor Signs Tax Incentive Legislation

Posted on: January 11, 2021

Cannabis Clean Up Legislation Held

Posted on: January 11, 2021

Larger Stimulus Checks Unlikely

Posted on: January 4, 2021

Federal Update and Further Stimulus

Posted on: December 30, 2020

COVID Relief & Omnibus Bill Passed

Posted on: December 28, 2020

Week of December 21 COVID-19 Update

Posted on: December 28, 2020

Week of December 14: COVID-19 Update

Posted on: December 18, 2020

Senate Passes PFRS 20 and Out Legislation

Posted on: December 18, 2020

Tax Incentive Legislation Moving Quickly

Posted on: December 18, 2020

Covid-19 Update: Week of December 6

Posted on: December 14, 2020

Cannabis Legislation Advancing

Posted on: December 14, 2020

Small Cell Regulation Bill Advances

Posted on: December 14, 2020

LFN Issued on UCC Enforcement

Posted on: December 10, 2020

AG Issues Marijuana Charge Guidance

Posted on: December 10, 2020

Law Requires Use of Body Cameras

Posted on: December 2, 2020

Gov. Murphy Signs Plastic Ban into Law

Posted on: November 11, 2020

2019 Senior Freeze Deadline Extended

Posted on: November 2, 2020

Hospital Propety Tax Bill Held from Vote

Posted on: November 2, 2020

Vegetation Management Bill Advances

Posted on: September 21, 2020

Governor Takes Action on Bills

Posted on: September 21, 2020

MIllioniares' Tax to Bolster State Budget

Posted on: September 21, 2020

State Budget Deliberations Begin

Posted on: September 11, 2020

Final NJ Census Push in Full Swing

Posted on: September 9, 2020

Census 2020- Time Is Running Out

Posted on: September 8, 2020

Proposed Budget Holds ETR/CMPTRA Level

Posted on: August 25, 2020

Week of August 17: COVID-19 Update

Posted on: August 25, 2020

Local Aid Crucial for Economic Recovery

Posted on: August 25, 2020

Week of August 10: COVID-19 Update

Posted on: August 14, 2020

Time is Running Out for the 2020 Census

Posted on: August 14, 2020

Week of August 2: COVID-19 Update

Posted on: August 9, 2020

COVID-19 Research Volunteers Needed

Posted on: August 6, 2020

Storm Update from NJBPU

Posted on: August 5, 2020

Week of July 27: COVID-19 Update

Posted on: August 5, 2020

Week of July 13: COVID-19 Update

Posted on: July 19, 2020

Murphy Ok's COVID-19 Borrowing Bill

Posted on: July 19, 2020

Interim State Budget Enacted

Posted on: July 6, 2020

Bridge Budget Bill Introduced

Posted on: June 26, 2020

Week of June 8, 2020 Covid-19 Update

Posted on: June 12, 2020

Week of May 25: COVID-19 Update

Posted on: May 29, 2020

Week of May 18: COVID-19 Update

Posted on: May 22, 2020

State Budget Update

Posted on: May 22, 2020

Call for Federal Lifeline

Posted on: May 22, 2020

DEP Launches "Mask Up!" Campaign

Posted on: May 20, 2020

Week of May 11 COVID-19 Update

Posted on: May 15, 2020

HEROES Act Includes Hometown Help

Posted on: May 15, 2020

Week of May 4 COVID-19 Update

Posted on: May 8, 2020

Week of April 27 COVID-19 Roundup

Posted on: May 1, 2020

Gov. Murphy OK's May 2 Park Reopening

Posted on: April 30, 2020

Possible Help for Seasonal Businesses

Posted on: April 30, 2020

New Federal Help for Local Businesses

Posted on: April 29, 2020

Week of April 20 COVID-19 Update

Posted on: April 24, 2020