New Jersey State Senate President Stephen Sweeney (D) says he is dedicated to passing legislation that would require nonprofit hospitals to pay property taxes and businesses to provide paid sick days to employees, according to an NJ.com report.
Developing a property tax on hospitals is probably the easier of the two initiatives, State Senate President Sweeney said during an editorial board meeting at The Star-Ledger, according to the report. The motion was prompted by the June 25 court ruling that Morristown (N.J.) Medical Center should pay property taxes on the majority of its 40-acre property.
"We absolutely will work toward moving it, at least in the Senate," said State Senate President Sweeney, adding that the hospitals "have not been fair."
A tax court judge ruled the medical center failed to meet legal standards that it operated as a nonprofit, charitable organization between 2006 and 2008. The ruling only applies to the hospital's property taxes, not its federal tax status as a nonprofit entity, according to the report. Morristown officials and hospital executives are in the process of negotiating a cash settlement that could amount to $2.5 million to $3 million per year for the three years between 2006 and 2008.
State Senate President Sweeney has voiced support over the ruling. He said the proposed legislation currently under review includes alternatives such as a payment in lieu of taxes, payment based on a percentage of revenues or a standard property tax.
"We are going to work towards a ... fair solution. We are not looking to put them out of business. But they are going to participate and share in the communities like other businesses. They are not nonprofits anymore," he said, according to the report.
The paid sick leave bill will be more challenging to pass, State Senate President Sweeney said. The Senate version of the bill would create a statewide paid sick leave standard and prevent municipalities from ratifying stricter ordinance.