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Bill

Bill

HD 4300

An Act providing for payments in lieu of taxes by the South Essex Sewerage District in the city of Salem

194th Legislature (2025-2026) Introduced by Manny Cruz

Requires South Essex Sewerage District to make tax payments to Salem, increasing municipal revenue but potentially raising utility costs for district customers.

Referred to the committee on House Rules
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WeVote Research Nonpartisan
Bill Summary · HD 4300

Legislative bill overview

HD 4300 would require the South Essex Sewerage District to make payments in lieu of taxes (PILOT) to the city of Salem. This is a narrow bill affecting a specific municipal utility district's financial obligations to one city, rather than creating statewide policy.

Why is this important

PILOT agreements affect how much revenue cities receive from tax-exempt entities operating within their borders. For Salem, establishing PILTs from the sewerage district could increase municipal revenue for schools, infrastructure, and services, though the amount depends on negotiated terms not specified in this bill.

Potential points of contention

  • Funding mechanism unclear: The bill doesn't specify the payment amount, calculation method, or timeline, leaving critical details to future negotiation
  • Precedent concerns: Granting PILTs to one sewerage district may prompt similar requests from other tax-exempt entities or municipalities
  • Operational impact: The sewerage district may argue PILTs increase costs passed to ratepayers, potentially raising fees for residents and businesses served

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

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