Boston's PILOT Program at Year 7

Boston's Payment in Lieu of Taxes (PILOT) program establishes voluntary payment agreements between the city and non-taxable institutions to offset forgone property tax revenue. This report finds that Boston's PILOT program is one of the most revenue-productive PILOT programs in the nation. It recommends shared taxation programs wherein state governments allocate a percentage of income tax paid by employees of non-taxable institutions to municipal governments and counting the community services performed by non-taxable institutions as a portion of an institution's PILOT payment.