BOSTON’S PILOT PROGRAM at YEAR 7

Program brings revenue generation & equity to the City

Is Boston’s Payment-in-Lieu-of-Taxes (PILOT) program successful in both revenue generation and equity? How important are tax-exempt institutions to the City’s economy? Should tax-exempt institutions pay more in Boston? In fiscal 2018, Boston completed its seventh year of implementing a new PILOT program involving Boston’s 47 largest private medical, educational and cultural tax-exempt institutions. In fiscal 2018, this program has generated $33.6 million, an increase of $18.5 million or 122% over actual receipts in fiscal 2011, the last year of the former program. Additionally, the current program is more standardized than its predecessor in that it applies equally to the largest 47 private tax-exempt institutions.

Report Objectives

Our report provides information and insights on:

• The effectiveness of the current PILOT program over the prior system
• The importance of the PILOT program to Boston
• The economic and social benefits of tax-exempt institutions to Boston
• Extent and ownership of tax-exempt property in Boston
• How Boston’s PILOT program compares with those in other cities

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