Who decides on non-profit status?
Here’s a question for the lawyers out there.
A state court judge in New Jersey has determined that a local hospital is not really a non-profit and therefore should not have a property tax exemption.
Does the existence of a federal IRS ruling that the hospital is non-profit serve to insulate the hospital from a state judge’s determination on this matter. In other words, does the Constitutional supremacy clause hold in this kind of matter? Can the hospital win on appeal based on this logic?
In short, can the state find in one way for state jurisdictional taxes, based on its own logic, while the Feds find another way for federal jurisdictional taxes, based on theirs?
Source: http://runningahospital.blogspot.com/2015/06/who-decides-on-non-profit-status.html
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