tax policy center
publications
HOME | TAX TOPICS | NUMBERS | TAX FACTS | LIBRARY | BRIEFING BOOK | EVENTS | LEGISLATION | PRESS | TAXVOX Blog | About Us help get RSS feed

Advanced Search

by Topic:

by Author:

by Type:

by Date Range:
  From last wks

     

library

The Charitable Property-Tax Exemption and PILOTs

Evelyn Brody, Mayra Marquez, Katherine Toran

Published: August 29, 2012
Availability:
 PDF |  Printer-Friendly Version

Share:  Share on Facebook Share on Twitter Share on LinkedIn Share on Yahoo Buzz Share on Digg Share on Reddit

Driven by increasing pressure on local budgets, some municipalities have sought a reexamination of the property-tax exemption for nonprofit organizations provided by state law. The property tax is a major source of revenue for many municipalities, and large nonprofits such as universities and hospitals may own significant portions of land within a given city. Some cities have begun asking nonprofits for voluntary PILOTs, or Payments in Lieu of Taxes—an attempt to collect a portion of the property tax revenue which would be owed if nonprofits were not tax-exempt. However, concerns from nonprofit organizations have arisen regarding PILOTs.