On Monday, the Pennsylvania Supreme Court agreed to hear an appeal of a Commonwealth Court decision that rescinded Tower Health’s Pottstown Hospital’s property tax exemption, writes Harold Brubaker for The Philadelphia Inquirer.

The lower court said the hospital wasn’t eligible for the tax exemption normally given to nonprofits because its executive’s salaries were based on financial performance.

If the Supreme Court overturns that decision, it will have ripple effects throughout the nonprofit world.

At the very least, the Supreme Court hearing will open up the opportunity for a clearer clarification of the almost 40-year-old precedent that says Pennsylvania nonprofits must “operate entirely free from private motive” in order to qualify for exemption from real estate taxes.

Tower Health said it is pleased that the Supreme Court has agreed to hear the appeal.

“We firmly believe that Pottstown Hospital’s commitment to its nonprofit mission is evident through charity care and the substantial community benefits it provides across the region it serves,” Tower said in a statement.

The Pottstown School District which is funded by tax dollars has a big stake in the court’s decision.

Pottstown School District spokesperson John Armato said, “We…are looking forward to a decision from the court that will get us close to a final resolution.”

Read more about Tower Health’s Pottstown Hospital and the Supreme Court appeal process in The Philadelphia Inquirer.

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