Hospitals support measure for payments instead of taxes

New Jersey’s largest hospital association says the nonprofit hospitals it represents are willing to make payments in lieu of taxes to the towns where they operate.

The Record reports that the New Jersey Hospital Association has declared its support for a proposal in the Legislature that would require the payments.

That legislation was introduced after a court decision this summer that eliminated a property-tax exemption for Morristown Medical Center.

The hospital association endorsed a proposal from state Senate President Stephen Sweeney to assess a fixed daily contribution of $2.50 per bed. It had feared that the decision would lead to tax battles with other hospitals.

The New Jersey League of Municipalities is against the measure and says the assessment formula is inadequate.

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