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 was the first year under the new PILOT guidelines.
FY 2013 First Half PILOT Results
- Fiscal Year 2013 First Half PILOT Contribution Recap
- On October 1, 2012, the Assessing Department sent first half PILOT notices to 49 nonprofit institutions requesting $13.9 million in cash contributions and $14.2 million in community benefits.
- To date, the City has received $11.6 million in first half cash contributions from the participating nonprofits for the first half of fiscal year 2013, or 83.1% of the requested amount, which represented a first half cash PILOT increase of 16.7% over the prior year.
- The following institutions made a first half FY 2013 PILOT contribution at or in excess of the City’s requested amount:
o Beth Israel Deaconess Medical Center
o Boston Medical Center
o Boston Symphony Orchestra
o Boston University
o Brigham and Women’s Hospital
o Children’s Hospital Boston
o Dana Farber Cancer Institute
o Faulkner Hospital
o Harvard Vanguard Medical Associates
o Isabella Stewart Gardner Museum
o Mass College of Pharmacy and Health Sciences
o Mass Eye & Ear Infirmary
o Mass General Hospital
o New England Baptist Hospital
o New England College of Optometry
o Showa Institute
o Simmons College
o Spaulding Rehabilitation Hospital
o Suffolk University
o The Boston Conservatory
o Tufts University
o Wentworth Institute of Technology
To qualify for the community benefits deduction, participating institutions are asked to submit their community benefits reports by March 1, 2013.
The fiscal year 2013 second half contributions will be due on May 1, 2013.
FY 2012 Second Half Update
- The fiscal year 2012 PILOT contributions - the first year of payments calculated according to the Mayor's new PILOT guidelines - are completed. FY 2012 PILOT Recap.
- The City received $19.5 million in PILOT contributions in fiscal year 2012, a 28.4% increase over what would have been paid under the prior PILOT program. This amount represents 90.7% of the $21.5 million requested amount.
- 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 2011 and April 2012, these 45 institutions received a first and second half notice, respectively, by mail that included the calculation of their PILOT amount.
- In sum, the institutions were asked to contribute approximately $21.5 million in cash and $21.9 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 was due on March 1, 2012.
- By comparison, in fiscal year 2011, these institutions paid PILOTs under the prior program of $15.1 million in cash and $2.3 million in community benefits.
- The following institutions contributed a PILOT at the requested amount and submitted proof of qualifying community benefits:
Boston Medical Center
Harvard Vanguard Medical Associates
Wentworth Institute of Technology
- The following institutions submitted proof of qualifying community benefits:
FY 2012 First Half Update
- 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:
|Bayridge Center||Mass College of Pharmacy|
|Berklee College of Music||Mass Eye and Ear Infirmary|
|Beth Israel Deaconess Medical Center||MASCO|
|Boston Architectural College||New England Baptist Hospital|
|Boston College High School||Northeastern University|
|Boston Medical Center||Partners HealthCare, Inc.|
|Boston Symphony Orchestra||Showa Boston|
|Boston University||Suffolk University|
|Dana Farber Cancer Institute||Wentworth Institute of Technology|
|Hebrew Rehabilitation Center|
FY12 First Half PILOT Contributions
PILOT Task Force page