Atlantic Health System agrees to settle property tax appeals

Morristown, N.J.-based Atlantic Health System and Pequannock Township in Morris County, N.J., settled a dispute regarding property tax appeals this week, reports The Record.

The dispute revolves around Atlantic Health's Chilton Medical Center in Pompton Plains, N.J. In June 2015, a tax court judge ruled Atlantic Health's Morristown (N.J.) Medical Center had not met legal standards for operating as a nonprofit, charitable organization, and should pay taxes on almost all of its property. Chilton joined the township's tax rolls following the judge's decision, and the township legally challenged Chilton's property tax exemption, according to the report.

But the two sides ultimately reached a settlement Tuesday. The settlement includes provisions for Atlantic Health to annually pay the township $237,500 through 2021 as a community service contribution, "as well as an additional $25,000 each year from 2016 through 2021, to support public health initiatives in the township," reports The Record.

Officials told the publication the settlement also includes "the outstanding 2014-2017 property tax appeals by the township and counterclaims by Atlantic Health."

The report notes Atlantic Health's payments to Pequannock could potentially change if new legislation is adopted.


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