A recent report from the Lincoln Land Institute suggests that cities and towns facing revenue shortfalls are increasingly looking to nonprofits to make payments in lieu of taxes (PILOTs) as a substitute for paying property taxes. As the study points out, at least 117 municipalities in at least 18 states rely on PILOT payments from hospitals, colleges, and other nonprofits. These municipalities are mainly concentrated in the Northeast and in Massachusetts in particular.
The study examines the common pitfalls with PILOTs and suggests alternative revenue-raising measures that might better serve the mutual interests of municipalities and nonprofits.
