Boston's Payment in Lieu of Taxes (PILOT) program

Local governments face challenges relating to tax-exempt properties and the strain it puts on budgets, for example in Boston with its numerous tax-exempt institutions. This brief explores how Boston tackled this issue, emphasizing a voluntary Payments in Lieu of Taxes (PILOT) program. A PILOT program is a voluntary arrangement where tax-exempt entities make financial or in-kind contributions to a local government in recognition of the services they receive and the impact they have on the community.