cityofboston.gov - Official Web Site of the City of Boston - Thomas M. Menino, Mayor

In January 2011, Mayor Menino adopted new guidelines for the PILOT program as recommended by the PILOT Task Force. The new guidelines call for voluntary payments based on an institution’s tax-exempt property value. Participants in the program include institutions from the educational, medical, and cultural sectors that own property valued in excess of $15 million. Each institution is eligible for a community benefits deduction generally limited to 50% of the PILOT contribution. The new guidelines also allow a deduction for any real estate taxes paid on property owned by the institution that is used for a tax-exempt purpose.

Fiscal year 2012 is the first year under the new PILOT guidelines. 

FY 2012 First Half Update

FY12 First Half PILOT Contributions 

• First half fiscal year 2012 PILOT contributions - the first payments calculated according to the Mayor’s new PILOT guidelines – are complete.
  
  
• The City received $9.9 million in first half PILOT payments, a 30% increase over what would have been paid under the prior PILOT program.  This amount represents 92% of the $10.8 million amount requested.
  
  
• In all, 45 private institutions from the educational, medical, and cultural sectors were identified as owning tax-exempt property valued in excess of the $15 million threshold established in the PILOT guidelines.  In September of this year, these 45 institutions received a notice by mail that included the calculation of their first-half PILOT request.
  
  
• The institutions have been asked to contribute approximately $21.5 million in cash and $22.2 million in community benefits that uniquely benefit Boston residents for fiscal year 2012.  Proof of community benefits spending consistent with the guidelines established by the Task Force will be due on March 1, 2012.   The request for the remaining cash balance will be sent at the end of March.
  
  
• In fiscal year 2011, these institutions paid PILOTs under the prior program of $15.2 million in cash and $2.3 million in community benefits.
  
• The following institutions indicated a willingness to contribute to the new PILOT program and made a payment at or in excess of the first half amount:

PILOT Task Force page