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Bill

HD 285

An Act ensuring consistent reimbursement of PILOT funding

194th Legislature (2025-2026) Introduced by Joe McKenna

Bill establishes predictable PILOT reimbursement schedules for Massachusetts municipalities to stabilize funding for services supporting tax-exempt properties.

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Bill Summary · HD 285

Legislative bill overview

HD 285 establishes consistent reimbursement mechanisms for PILOT (Payment in Lieu of Taxes) funding in Massachusetts. The bill aims to standardize how municipalities receive these payments, which compensate local governments for tax-exempt properties like state facilities and nonprofits located within their jurisdictions.

Why is this important

Municipalities depend on PILOT payments to offset revenue losses from properties that generate no property tax income but require municipal services. Inconsistent reimbursement schedules create budgeting uncertainty for towns and can strain local services if payments arrive unpredictably or fall short of commitments.

Potential points of contention

  • State budget impact: Standardizing and potentially increasing PILOT reimbursements could require reallocating significant state funds or reducing other budget priorities
  • Definition of "consistent": Disagreement may exist over whether consistency means fixed annual amounts, inflation adjustments, percentage-of-value formulas, or full market-value replacement
  • Scope of tax-exempt properties: Questions about which properties qualify (state buildings, universities, hospitals, nonprofits) and whether all should be treated equally

Compiled from official sources — confirm details with the bill’s official record.

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