The township of Teaneck, N.J., voted Tuesday to file a lawsuit against Teaneck-based HolyNameMedicalCenter to challenge the hospital's exemption from local property taxes, reports The Record.
The city council of Englewood, N.J., also voted Tuesday to appeal the tax-exempt status of Englewood (N.J.) Hospital and Medical Center. Of 62 nonprofit hospitals in New Jersey, 17 currently face tax-related court cases, according to the article.
The Teaneck and Englewood councils have acted just days after New Jersey Governor Chris Christie said he would ask the state legislature to pass a law that would freeze tax assessments for tax-exempt hospitals for 2016 and 2017.
The flurry of tax appeals have come in the wake of a landmark decision made last June by the New Jersey Tax Court. The court ruled that 687-bed nonprofit Morristown (N.J.) MedicalCenter was largely operating as a for-profit entity and stripped the hospital of its property tax exemption. The hospital agreed to pay a $15.5 million settlement over the next decade to resolve the issue.