Signed by Governor Phil Murphy

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends property tax law to exempt non-profit hospitals.

Highlights:

• Defines “voluntary agreement” as any payment in lieu of taxes agreement or other agreement entered into between the owner of the property and the municipality for the purpose of compensating the municipality for any municipal services the municipality provides to the hospital (Sec. 1.g).

• Defines “satellite emergency care facility” as a facility, which is owned and operated by a hospital, and which provides emergency care and treatment for patients (Sec. 3.c).

• Specifies nothing can be construed to prohibit a municipality and a hospital from entering into a voluntary agreement requiring additional payments by the hospital to the municipality (Sec. 1-3).

• Exempts an owner of property used as a hospital that would otherwise be required to remit a community service contribution from remitting any such contribution for a tax year if prior to December 1 of the pre-tax year (Sec. 1.f):

• The owner certifies to the Department of Health that the hospital did not balance bill or collect payment from an individual for inpatient services rendered at the hospital by its employed physicians during the current calendar year, and that the hospital’s forbearance of payment was lawful and consistent with an advisory opinion issued to the hospital by the federal government; and

• The hospital has provided community benefit over the preceding three years for which the hospital has filed such forms averaging at least 12 percent of the hospital’s total expenses.

• Exempts property, including land and buildings, used as a hospital or a satellite emergency care facility, which is owned by an association or corporation organized as a nonprofit entity of the exclusively for hospital purposes from taxation (Sec. 3).

• Specifies nothing can be construed to require a municipality to refund any taxes paid on such property as a result of such omitted assessments or regular assessments pursuant to any previous settlement of litigation or other agreement (Sec. 4).

• Classifies "hospital purposes" to include health care facilities for the elderly, such as nursing homes; residential health care facilities; assisted living residences; facilities with a Class C license similar facilities that provide medical, nursing or personal care services to their residents; and that portion of the central administrative or service facility of a continuing care retirement community that is reasonably allocable as a health care facility for the elderly (Sec. 5).

• Prohibits a taxpayer or taxing district from being entitled to appeal either an assessment or an exemption or both that is based on a financial agreement (Sec. 6-2.b).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends property tax law to exempt non-profit hospitals.

Highlights:

• Defines “voluntary agreement” as any payment in lieu of taxes agreement or other agreement entered into between the owner of the property and the municipality for the purpose of compensating the municipality for any municipal services the municipality provides to the hospital (Sec. 1.g).

• Defines “satellite emergency care facility” as a facility, which is owned and operated by a hospital, and which provides emergency care and treatment for patients (Sec. 3.c).

• Specifies nothing can be construed to prohibit a municipality and a hospital from entering into a voluntary agreement requiring additional payments by the hospital to the municipality (Sec. 1-3).

• Exempts an owner of property used as a hospital that would otherwise be required to remit a community service contribution from remitting any such contribution for a tax year if prior to December 1 of the pre-tax year (Sec. 1.f):

• The owner certifies to the Department of Health that the hospital did not balance bill or collect payment from an individual for inpatient services rendered at the hospital by its employed physicians during the current calendar year, and that the hospital’s forbearance of payment was lawful and consistent with an advisory opinion issued to the hospital by the federal government; and

• The hospital has provided community benefit over the preceding three years for which the hospital has filed such forms averaging at least 12 percent of the hospital’s total expenses.

• Exempts property, including land and buildings, used as a hospital or a satellite emergency care facility, which is owned by an association or corporation organized as a nonprofit entity of the exclusively for hospital purposes from taxation (Sec. 3).

• Specifies nothing can be construed to require a municipality to refund any taxes paid on such property as a result of such omitted assessments or regular assessments pursuant to any previous settlement of litigation or other agreement (Sec. 4).

• Classifies "hospital purposes" to include health care facilities for the elderly, such as nursing homes; residential health care facilities; assisted living residences; facilities with a Class C license similar facilities that provide medical, nursing or personal care services to their residents; and that portion of the central administrative or service facility of a continuing care retirement community that is reasonably allocable as a health care facility for the elderly (Sec. 5).

• Prohibits a taxpayer or taxing district from being entitled to appeal either an assessment or an exemption or both that is based on a financial agreement (Sec. 6-2.b).

Full Bill Text