April 29, 2009
More Pressure for PILOTS?
This story in The Daily Princetonian discusses efforts of a local citizens' group to pressure Princeton University to contribute more money to the local government. Over the past decade or so, many municipalities have cut deals with large nonprofits for "payments in lieu of taxes" (PILOTs) to offset at least some of the lost revenue from tax exemption. The article in the Princetonian notes that Princeton contributed over $1 million to the Princeton local government under a PILOT agreement, and choose to pay another $8.9 million in taxes on property that they could have requested exemption for.
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Very interesting article. Do you know how the university determines it PILOT payment? It would seem more logical (though not politically sound) to raise the sales taxes in township. That way the tax burden is more spread out among the base (albeit the fact that consumption taxes are inherently regressive).
Posted by: William | Apr 29, 2009 8:23:39 AM