Overturning a 2023 Commonwealth Court decision in favor of Pottstown School District, the Pennsylvania Supreme Court ruled that Pottstown Hospital was entitled to property tax exemption as a nonprofit, despite linking executive bonuses to profits. In its 5-2 decision, the Supreme Court ruled that Pottstown Hospital’s financial bonuses were reasonable because nonprofits need to compete with for-profit companies for talent to run increasingly complex businesses. Pottstown School District Superintendent Stephen Rodriguez said the district needs to review the decision before determining what its next steps would be. The school district and borough would have recognized a little over $1 million in tax revenue had the court upheld the Commonwealth Court’s decision. Read more details in the Inquirer.
Source: Philadelphia Inquirer; 5/30/2025