More cities are exploring the use of PILOT programs (Payments In Lieu Of Taxes) as a way to supplement ailing city coffers. The gist is that large non-profits, which are used to paying no property taxes, are being asked to chip in for city services.
Mary Newsom in Charlotte, North Carolina looks at a study from the Lincoln Insitute of Land Policy on PILOT programs. The report says that 117 municipalities across the country are trying them out. Newsom asks, could this work in my county?:
"In an era marked by teacher layoffs, library closings and cuts to important public health and educational services, is it time for Mecklenburg County to start talks with some of its larger and big-property-owning nonprofits?"
Of course, these things would need to be handled carefully:
"Obviously, there are many sides to consider beyond simple tax revenue: How financially stable is the nonprofit? What services does it provide to the community that might make up for its lack of property tax payments? What services does it require from the community?"
Read the full story: New Property Tax Source for Mecklenburg?
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