The Hackensack, N.J., city council has filed a tax appeal seeking to recoup millions of dollars from tax-exempt Hackensack University Medical Center, according to northjersey.com.
City officials want HUMC to pay a portion of the $19 million in tax dollars it would owe the city if it were not exempt from paying property taxes, according to the report.
"There's a lot of pressure on these hospitals at this time to make some payment of taxes to the host communities," Art Carlson, Hackensack's tax assessor, told northjersey.com. "We realize that the hospital is a great asset to the city, but that doesn't preclude it from some kind of payments in lieu of taxes being assessed."
City and hospital officials are attempting to negotiate an agreement and avoid litigation. They have met multiple times since the tax appeal was filed, and city officials are optimistic an agreement can be reached, according to the report.
More than 35 hospitals in New Jersey have had their tax exemptions challenged since June 2015, when a tax court judge ruled Morristown (N.J.) Medical Center should not be exempt from property taxes, as it failed to satisfy the legal test that it operated as a nonprofit, charitable organization for several years.
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