Showing posts with label Atlantic Health System. Show all posts
Showing posts with label Atlantic Health System. Show all posts

Wednesday, January 20, 2016

Hackensack now free to sue hospital that shifts tax burden

Two views of a home being built on North Woodland Street and Booth Avenue in Englewood, above and below, where city officials gave property owner Nader Bolour a permit to remove 109 trees as long as he plants 273 new trees, The Record reported in December 2014.

Bolour, a native of Iran, is owner of the Doris Leslie Blau Gallery of antique carpets and custom-designed rugs in Manhattan.

Editor's note: Subscribers received an e-mail from The Record that "a production issue" may delay delivery of today's paper. This post is based on a story that appears on the paper's Web site.

By VICTOR E. SASSON
EDITOR

Hackensack and other towns "may try to levy property taxes against non-profit hospitals now that Governor Christie has vetoed legislation" that would require them to pay a relatively small community service fee, The Record says.

Hackensack University Medical Center and other non-profits that claim exemption from property taxes shift the burden unfairly onto homeowners and businesses -- a story the Woodland Park daily has ignored for years.

Hackensack's assessor has successfully taxed $139 million in HUMC property, yielding about $4,877,000 a year.

But the main hospital complex, an additional $257 million in property that is tax exempt, would yield more than $10 million in revenue for the city, and likely halt the annual increase on other tax payers.

Under the proposed state law, HUMC would have paid the city $690,762 a year -- essentially chump change.

Christie veto

Christie vetoed a bill proposed after "last summer's Tax Court decision that invalidated the property tax exemption enjoyed by non-profit Morristown Medical Center," Washburn reports.

The hospital's parent company, Atlantic Health System, eventually settled, The Record says, "agreeing to pay $15.5 million to satisfy back taxes and interest, and will make future payments of about $1 million a year as tax on the for-profit part of its operation."

Washburn's story makes no reference to HUMC, the biggest non-profit hospital in North Jersey.

Hackensack, Englewood, Teaneck, Ridgewood, Wayne and Paterson now are free to repeat Morristown's successful challenge to the non-profit status of the hospital in their community.