Nonprofits II: Issues, Costs and Benefits
Demolishing Hull House Property Tax-Exempt Status: Case Study The town of Morristown, New Jersey has a lawsuit against Morristown Medical Center attempting to take away part of the hospital’s property-tax exemption. Started as a small building providing free medical services to the poor, Morristown Medical Center is now part of a health conglomerate with revenue of $1.7 billion a year. Much of its revenue comes from providing facilities for private doctors and managing ambulatory and testing services. The town won an earlier suit classifying part of the hospital’s operations as taxable. If Morristown wins, the hospital will be liable to up to $3 million per year in property taxes. Since the case is almost certain to go to the state supreme court, the nonprofit status of all hospitals in New Jersey with similar operations and relationships with doctors could be at risk. The court’s ruling could potentially affect all nonprofits in...