Gary W. Herschman, a Member of the Firm in the Health Care and Life Sciences practice, in the firm’s Newark and New York offices, was quoted by Bloomberg BNA Health Law Reporter, in “Hospital Settlement in Property Tax Case Holds Lessons for Nonprofit Health Systems.”
Following is an excerpt (see below to download the full article in PDF format):
The issue isn’t limited to New Jersey, Gary W. Herschman, of Epstein Becker Green in Newark, N.J., told Bloomberg BNA. There have been similar cases in other states, and with local governments facing budgetary concerns, ‘‘more and more states and municipalities will be revisiting whether nonprofit 501(c)(3) healthcare facilities are entitled to state property tax exemptions,’’ he said. A 501(c)(3) corporation is one that is exempt from taxation under federal tax law.
Nonprofit hospitals now must consider whether state and local authorities will be questioning their taxexempt status, Herschman said.
Herschman, whose practice involves health-care transactional work, said acquiring corporations now must conduct due diligence on the extent to which their target might be exposed to property tax liability.
