Red Bank Keeps Pressure on Non-Profits

With no solution yet in place, Mayor Pat Menna continued to maintain his position that the tax burden imposed on Red Bank by its local non-profits puts the borough in a financial hole each budget season at Wednesday’s council meeting

Menna said he’s met with legislators representing the region about finding a way to combat the high percentage of organizations that don’t pay taxes because of their non-profit statuses. He said he’d likely have an official report on the issue by Red Bank’s next council meeting.

The issue is that Red Bank has a significantly higher percentage of non-profits than neighboring towns. Menna said non-profits own about 25-percent of the property in town. While the actual figure is likely closer to 15-percent, that number is much higher than most of Red Bank’s neighbors who’s non-profits account for less than 10-percent of their town’s property ownership.

Councilman Michael DuPont said Red Bank’s non-profits cost the borough more than $1.2 million in local taxes each year. Menna said many of the organizations taking advantage of their no-tax status understand that there is an issue, even if they aren’t willing to say it.

“A lot of the not-for-profits will privately agree that there is a problem,” he said.

Some non-profits, like Riverview Medical Center and HABcore, Inc., pay Red Bank through some sort of voluntary payment or payment in lieu of taxes, or PILOT, plan. Menna would like to see the alternative tax measures extended to other non-profits in town.

For a complete list of non-profits in Red Bank obtained via OPRA request and previously published on Patch, .