Payments in Lieu of Taxes by Nonprofits: Which Nonprofits Make PILOTs and Which Localities Receive Them Adam H. Langley, Daphne A. Kenyon, and Patricia C. Bailin © 2012 Lincoln Institute of Land Policy Lincoln Institute of Land Policy Working Paper The findings and conclusions of this Working Paper reflect the views of the author(s) and have not been subject to a detailed review by the staff of the Lincoln Institute of Land Policy. Contact the Lincoln Institute with questions or requests for permission to reprint this paper.
[email protected] Lincoln Institute Product Code: WP12AL1 Abstract This report provides more information than was previously available in any single source on the individual nonprofits that make payments in lieu of taxes (PILOTs) and the localities which receive them. PILOTs are voluntary payments made by tax-exempt private nonprofits as a substitute for property taxes. While the term PILOT can refer to many different types of payments, this report imposes a consistent definition that excludes any payments from for-profit companies or public entities (e.g., housing authorities) and any payments from nonprofits that are not voluntary, such as fees. Data came from a 2011 survey of local government officials in 599 jurisdictions with the largest nonprofit sectors and a three-year data collection project. Key findings from the study are: • PILOTs have been received by at least 218 localities in at least 28 states since 2000; these payments are collectively worth more than $92 million per year. This is a much greater number of PILOTs than identified in previous studies, with the increase due to a more expansive methodology.