Payment In Lieu of Tax (PILOT) Program
Many of Boston’s major schools, hospitals, and cultural institutions make a voluntary contribution to the City each year. Contributions come in the form of cash and community programs that uniquely benefit the City’s residents. The figures below reflect payments on exempt properties. Institutions with taxable properties make additional payments through the regular tax system.
The property tax revenue collected by the City of Boston each year helps to fund important services such as police and fire protection, as well as snow removal. These City services are made available to both taxable property owners and those property owners who are exempt from the property tax. PILOT contributions help to offset the burden placed on Boston taxpayers to fund City services for all property owners.
In January 2011, the City 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 percent 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.
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Fiscal Year 2023 PILOT results
The following table shows the results for the Fiscal Year 2023 Payment in Lieu of Taxes (PILOT) Program as of October 27, 2023. Collectively the institutions contributed 76% towards the PILOT requested.
| CATEGORY | REQUESTED PILOT | COMMUNITY BENEFITS CREDITS | CASH CONTRIBUTIONS | % PILOT REQUEST MET |
|---|---|---|---|---|
|
Educational |
$69,335,346 |
$31,962,386 |
$15,065,528 |
68% |
|
Medical |
$54,874,283 |
$29,115,129 |
$20,167,316 |
91% |
|
Cultural |
$4,375,494 |
$1,054,898 |
$489,562 |
35% |
|
Total |
$128,585,124 |
$62,132,413 |
$35,722,406 |
76% |
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.
Community Benefits reports
Community Benefits reports- Berklee College
- Beth Israel Deaconess
- Boston Architectural College
- Boston Children's Hospital
- Boston College High School
- Boston Medical Center
- Boston Symphony Orchestra
- Boston University
- Brigham and Women's Hospital
- Dana-Farber Cancer Institute
- Emerson College
- Emmanuel College
- Faulkner Brigham and Woman's Hospital
- Fisher College
- Franciscan Children's Hospital
- Harvard University
- Hebrew Rehabilitation Center
- Institute of Contemporary Art
- Isabella Gardner Museum
- MASCO
- Mass College of Pharmacy and Health Sciences
- Mass Eye & Ear Infirmary
- Mass General Hospital
- Museum of Fine Arts
- Museum of Science
- New England Aquarium
- Bayridge Center
- Bayridge Center 2
- Berklee College
- Beth Israel Deaconness
- Boston Architectural College
- Boston Children's Hospital
- Boston College High School
- Boston Medical Center
- Boston Symphony Orchestra
- Boston University
- Bostonian Foundation
- Brigham and Women's Hospital
- Children's Museum
- Children's Hospital
- Dana Farber
- Emerson College
- Faulkner Hospital
- Fisher College
- Franciscan Children's Hospital
- Harvard University
- Isabella Stewart Gardner Museum
- MASCO
- Mass. College of Pharmacy and Health Science
- Mass. General Hospital
- Mass Eye & Ear 1
- Mass Eye & Ear 2
- Museum of Fine Arts
- Museum of Science
- New England Aquarium
- New England Baptist Hospital
- New England College of Optometry
- New England Conservatory of Music
- Northeastern University 1
- Northeastern University 2
- Northeastern University 3
- Northeastern University 4
- Showa Institute
- Simmons University
- Spaulding Rehabilitation Center
- Suffolk University
- Tufts Medical Center
- Tufts University
- Wentworth Institute of Technology
- WGBH
- Winsor School
- New England Aquarium
- New England Baptist Hospital
- New England College of Optometry
- New England Conservatory of Music
- Northeastern University
- Showa Institute
- Simmons College
- Spaulding Rehabilitation Center
- Suffolk University
- Tufts Medical Center
- Tufts University
- Wentworth Institute of Technology
- WGBH
- Winsor School
- Bayridge Residence Cultural Center
- Berklee College of Music
- Beth Israel Deaconess Medical Center
- Beth Israel Deaconess Medical Center (cover letter)
- Boston Children's Hospital
- Boston Children's Museum Exhibit B
- Boston Children's Museum
- Boston College High School
- Boston Symphony Orchestra, Inc.
- Boston Medical Center
- Boston University
Previous PILOT Contributions
Previous yearsThe following table shows the results for the Fiscal Year 2022 Payment in Lieu of Taxes (PILOT) Program as of September 9, 2022. Collectively the institutions contributed 75% towards the PILOT requested.
| CATEGORY | REQUESTED PILOT | COMMUNITY BENEFITS CREDITS | CASH CONTRIBUTIONS | % PILOT REQUEST MET |
|---|---|---|---|---|
|
Educational |
$ 66,709,087 |
$ 30,793,921 |
$ 14,788,450 |
68% |
|
Medical |
$ 52,435,618 |
$ 25,032,192 |
$ 20,245,257 |
91% |
|
Cultural |
$ 4,434,883 |
$ 1,085,610 |
$ 470,562 |
35% |
|
Total |
$ 123,579,587 |
$ 56,911,723 |
$ 35,504,268 |
75% |
In all, 47 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.
The following table shows the results for the Fiscal Year 2021 Payment in Lieu of Taxes (PILOT) Program as of March 21, 2022. Collectively the institutions contributed 77% towards the PILOT requested.
| CATEGORY | REQUESTED PILOT | COMMUNITY BENEFITS CREDITS | CASH CONTRIBUTIONS | % PILOT REQUEST MET |
|---|---|---|---|---|
|
Educational |
$ 64,744,373 |
$ 29,058,983 |
$ 14,585,786 |
69% |
|
Medical |
$ 51,156,456 |
$ 24,599,544 |
$ 20,040,322 |
88% |
|
Cultural |
$ 4,326,715 |
$ 1,729,368 |
$ 459,025 |
51% |
|
Total |
$ 120,227,544 |
$ 55,387,895 |
$ 35,085,133 |
77% |
In all, 47 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.
The following table shows the results for the Fiscal Year 2020 Payment in Lieu of Taxes (PILOT) Program as of November 3, 2020. Collectively the institutions contributed 79% towards the PILOT requested.
| CATEGORY | REQUESTED PILOT | COMMUNITY BENEFITS CREDITS | CASH CONTRIBUTIONS | % PILOT REQUEST MET |
|---|---|---|---|---|
|
Educational |
$ 60,204,322 |
$ 27,615,251 |
$ 14,761,512 |
73% |
|
Medical |
$ 47,787,373 |
$ 23,234,499 |
$ 19,183,469 |
89% |
|
Cultural |
$ 4,250,421 |
$ 2,061,877 |
$ 445,549 |
59% |
|
Total |
$ 112,242,116 |
$ 52,911,627 |
$ 34,390,529 |
79% |
In all, 47 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.
The following table shows the results for the Fiscal Year 2019 Payment in Lieu of Taxes (PILOT) Program as of August 29, 2019. Collectively the institutions contributed 79% towards the PILOT requested.
| Category | Requested PILOT | Community Benefits Credit | Cash Contribution | % PILOT Request Met |
|---|---|---|---|---|
| Educational | $57,266,205 | $25,909,339 | $14,555,085 | 71% |
| Medical | $47,760,501 | $24,625,768 | $19,177,351 | 92% |
| Cultural | $4,108,542 | 1,961,668 | $455,493 | 59% |
| Total | $109,135,247 | $52,496,775 | $34,187,928 | 79% |
In all, 47 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.
The City received $33.6 million in PILOT cash contributions in fiscal year 2018, $1.2 million (1.0%) more than the City received from PILOT contributors last year and $18.5 million (122.5%) more than in the year prior to the implementation of the new PILOT guidelines (fiscal year 2011).
The fiscal year 2018 PILOT cash contributions represented 66% of the $50.8 million requested PILOT amount.
In all, 49 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 October 2016 and April 2017, these 49 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 $49.5 million in cash and $52.3 million in community programming to the unique benefit of Boston residents for fiscal year 2017. Proof of community benefits spending consistent with the guidelines was due on March 1, 2017.
The City received $32.4 million in PILOT cash contributions in fiscal year 2017, $0.3 million (1.0%) more than the City received from PILOT contributors last year and $17.3 million (113.9%) more than in the year prior to the implementation of the new PILOT guidelines (fiscal year 2011).
The fiscal year 2017 PILOT cash contributions represented 65.5% of the $49.5 million requested PILOT amount.
In all, 49 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 October 2016 and April 2017, these 49 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 $49.5 million in cash and $52.3 million in community programming to the unique benefit of Boston residents for fiscal year 2017. Proof of community benefits spending consistent with the guidelines was due on March 1, 2017.
A summary of the fiscal year 2016 PILOT contributions - the fifth year of payments calculated according to the City's PILOT guidelines - is listed by institution:
The City received $32.1 million in PILOT cash contributions in fiscal year 2016, $4.2 million (14.9%) more than the City received from PILOT contributors last year and $16.9 million (111.8%) more than in the year prior to the implementation of the new PILOT guidelines (fiscal year 2011). The fiscal year 2016 PILOT cash contributions represented 67.7% of the $47.4 million requested PILOT amount.
In all, 49 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 October 2015 and April 2016, these 49 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 $47.4 million in cash and $50.2 million in community programming to the unique benefit of Boston residents for fiscal year 2016. Proof of community benefits spending consistent with the guidelines was due on March 1, 2016.
A summary of the fiscal year 2015 PILOT contributions - the fourth year of payments calculated according to the City's PILOT guidelines - is listed by institution:
The City received $27.9 million in PILOT contributions in fiscal year 2015, a 84.4 percent increase over what was previously paid under the prior PILOT program in fiscal year 2011. This amount represents 68.6 percent of the $40.7 million requested PILOT amount.
In all, 49 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 October 2014 and April 2015, these 49 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 $40.7 million in cash and $43.2 million in community programming to the unique benefit of Boston residents for fiscal year 2015. Proof of community benefits spending consistent with the guidelines was due on March 1, 2015.
By comparison, in fiscal year 2014 the City received $26.0 million in PILOT cash contributions and $35.5 million in community benefits.
A summary of the fiscal year 2014 PILOT contributions - the third year of payments calculated according to the City's PILOT guidelines - is listed by institution:
The City received $26 million in PILOT contributions in fiscal year 2014, a 71.6 percent increase over what was previously paid under the prior PILOT program in fiscal year 2011. This amount represents 75 percent of the $34.6 million requested PILOT amount.
In all, 49 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 October 2013 and April 2014, these 49 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 $34.6 million in cash and $35.5 million in community benefits that uniquely benefit Boston residents for fiscal year 2014. Proof of community benefits spending consistent with the guidelines established by the Task Force was due on March 1, 2014.
By comparison, in fiscal year 2013 the City received $23.2 million in PILOT cash contributions and $28.9 million in community benefits.
A summary of the fiscal year 2013 PILOT contributions - the second year of payments calculated according to the Mayor's PILOT guidelines is listed by institution:
The City received $23.2 million in PILOT contributions in fiscal year 2013, a 53.1 percent increase over what was previously paid under the prior PILOT program in fiscal year 2011. This amount represents 82.3 percent of the $28.2 million requested PILOT amount.
In all, 49 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 2012 and April 2013, these 49 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 $28.2 million in cash and $28.9 million in community benefits that uniquely benefit Boston residents for fiscal year 2013. Proof of community benefits spending consistent with the guidelines established by the Task Force was due on March 1, 2013.
By comparison, in fiscal year 2012 the City received $19.5 million in PILOT cash contributions and $21.9 million in community benefits.
The following institutions submitted proof of qualifying community benefits:
The fiscal year 2012 PILOT contributions - the first year of payments calculated according to the Mayor's new PILOT guidelines - are completed.
The City received $19.5 million in PILOT contributions in fiscal year 2012, a 28.4 percent increase over what would have been paid under the prior PILOT program. This amount represents 90.7 percent 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 submitted proof of qualifying community benefits:
The following institutions contributed a PILOT at the requested amount and submitted proof of qualifying community benefits:
About the PILOT Task Force
In January 2009, the City of Boston created a Task Force to examine the relationship between the City and tax-exempt institutions, specifically the major educational and medical institutions in Boston.
At that time, most of these tax-exempt, land-owning institutions were making a voluntary PILOT contribution to the City to help cover the cost of providing the institutions with essential City services (i.e. police, fire, snow removal).
However, the PILOT contributions varied considerably between the institutions. The Task Force was responsible for reviewing the PILOT Program, as well as the institutions' community benefits, and ultimately made recommendations to strengthen the partnership between Boston and its tax-exempt institutions.
OBJECTIVES
The PILOT Task Force's primary objectives were:
- Set a standard level of contributions - in programs and payments - to be met by all major tax-exempt land owners in Boston.
- Develop a methodology for valuing community partnerships made by tax-exempt institutions.
- Propose a structure for a consolidation program and payment negotiation system, which will allow the City and its tax-exempt institutions to structure longer term, sustainable partnerships focused on improving services for Boston's residents.
- Clarify the costs associated with providing City services to tax-exempt institutions.
- Provide recommendations on legislative changes needed at the City or state level, if necessary.
PILOT GUIDELINES
The City adopted the following PILOT Program guidelines as recommended by the Task Force and in effect beginning in Fiscal Year 2012:
- Participation in the PILOT Program is voluntary
- All institutions that own tax-exempt property valued in excess of $15 million should be asked to participate
- PILOT contributions should be 25% of what the institution might expect to pay in real estate taxes if the exempt property were taxable
- Institutions should receive up to a 50% PILOT deduction for qualifying community programs that uniquely benefit Boston residents. In the case of exceptional opportunities for partnership, the 50% cap may be exceeded.
- The new PILOT formula should be phased in over a 5-year period starting in Fiscal Year 2012
- If an institution pays standard real estate taxes on a property that it uses for its charitable purpose, the institution may receive a PILOT credit
Who's Involved:
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