Princeton University Tax Exempt Case May be Influenced by Morristown Hospital Ruling

The judge who ruled that Morristown Memorial Hospital didn’t qualify for a tax exemption will rule on a challenge to Princeton University’s tax exempt status, the Princeton Packet reports.

Judge Vito L. Bianco ruled last month that the hospital was not tax exempt during a period of three years.

Princeton University Vice President Robert K. Durkee said there are significant differences between the hospital case and the University’s case, while the attorney representing the residents said he believes the University should take the hospital ruling into account and begin negotiating a settlement, according to the report.

The lawsuit challenges the tax-exempt status of some of the University’s buildings that are used for commercial use, such as eateries.

The University is also being accused of acting like a for-profit institution, including holding a licensing agreement for a chemotherapy drug.

Princeton has so far taken the University’s side, but resident Dale Meade suggested the town remain neutral on the issue. The town is named as a defendant in the lawsuit.

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