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New Jersey Tax Court holds hospital unable to claim exemption from property tax

The New Jersey Tax Court recently held that a nonprofit hospital was not entitled to an exemption from property tax assessed by the town of Morristown for the 2006-08 tax years, because the hospital failed to provide evidence that the operation and use of its property was entirely conducted under a nonprofit motive. Focusing on a popular topic in the area of property tax, the Tax Court thoroughly considered the applicability of the nonprofit hospital’s entire property tax exemption. Following the decision, the hospital settled the litigation with Morristown for $15.5 million in payments over a 10-year period.

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