PILOT Agreements Gain in Popularity, As Non-Profits are Asked to Pay the Piper

The financial crises faced by many municipalities has them searching for ever more creative means to bolster city budgets. As a result, non-profit institutions are increasingly being asked to complete payments in lieu of taxes (PILOT) agreements.

2 minute read

May 23, 2012, 10:00 AM PDT

By Jonathan Nettler @nettsj


As recent debates in Pittsburgh and Providence, R.I. bring PILOT agreements to national attention, Kevin Kiley describes the confluence of factors leading property-tax-exempt nonprofits, "often under duress from local
officials," to agree to such deals with local governments to help municipalities
balance their budgets. The subject was the topic of a daylong series of panels hosted earlier this week by the Urban Institute.

"Over the course of the day, speakers said they believe municipalities,
and potentially regional governments such as counties, will place
increasing pressure on nonprofits to contribute more to local government
budgets. Most of the speakers were supportive of PILOT agreements,
recognizing that the size and role of nonprofits, particularly large
colleges, universities and medical centers, have changed dramatically
since states established the tax exemption. Such organizations also use
up a significant amount of municipal resources, they argue. Colleges and
universities, particularly those that own a significant amount of land
and have considerable financial resources, are likely to be an easy
target for government pressure."

"Daphne Kenyon, an economist at the Lincoln Institute of Land Policy,
said there is growing support for taxing traditionally tax-exempt
institutions, particularly colleges, hospitals and even religious
institutions. Speakers at the Urban Institute meeting said it might be
financially better for nonprofits to strike PILOT agreements now to
mollify critics rather than face the revocation of their tax-exempt
status in a few years."

 

Tuesday, May 22, 2012 in Inside Higher Ed

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight