NB challenges PMC’s tax exempt status, prepares to sue

NORTH BERGEN – North Bergen commissioners voted on Feb. 24 to move forward with plans to sue Palisades Medical Center and The Harborage nursing home over their tax exempt status. The township alleges that “the owner or occupant of the property is operating in a ‘for-profit’ capacity in violation of N.J.S.A. 54:4-3.6 and applicable case law and is not entitled to tax exempt status.”
This past summer, the town of Morristown took legal action against Morristown Medical Center, challenging their property tax exemption, and won a $15.5 million settlement.
A subsequent bill requiring non-profit hospitals to contribute financially to their host communities was vetoed in January by Gov. Chris Christie.
“The governor’s veto of legislation that would have established a framework for hospitals to make fair payments to municipalities for the services they consume has left North Bergen with no choice other than to move forward with legal action to protect its rights and seek tax revenue from Palisades Medical Center,” said North Bergen Mayor Nicholas Sacco. “We hope to come to a resolution that protects North Bergen taxpayers and is fair to all parties.”

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