Thursday, December 11, 2008
Boston mayor Thomas M. Menino has announced a new task force that will investigate ways of increasing payments in lieu of taxes (PILOT) from tax-exempt nongovernmental institutions in the city, the Boston Globe reports. Combined, tax-exempt institutions give the city $32.4 million annually in PILOTS. Taxing these institutions' properties would generate between $350 and $400 million each year, city officials estimate.
One goal of the mayor's initiative is to standardize contributions across institutions. Currently, many pay widely differing amounts. "For example, Boston University contributes $4.6 million each year, the highest of any institution, while Harvard University - which owns twice as much land in Boston - pays $1.9 million. Northeastern University contributes only $30,600. In the medical sector, Massachusetts General Hospital pays nearly $2 million, while Beth Israel Deaconess Medical Center gives $125,000 and Boston Medical Center pays $140,000."