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Bill

S 2016

An Act relative to payments in lieu of taxation by organizations exempt from the property tax

194th Legislature (2025-2026) Introduced by Nick Collins and 3 co-sponsors

Bill modifies how tax-exempt organizations make payments to Massachusetts municipalities, balancing nonprofit status with local government funding needs.

Accompanied a study order, see S3130
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Bill Summary · S 2016

Legislative bill overview

S 2016 addresses payments in lieu of taxation (PILOT) made by tax-exempt organizations in Massachusetts. The bill seeks to modify how exempt organizations—such as nonprofits, educational institutions, and hospitals—contribute financially to municipalities where they operate but pay no property taxes.

Why is this important

Tax-exempt organizations occupy significant real estate in many Massachusetts communities but generate no property tax revenue, placing fiscal pressure on local governments for schools, infrastructure, and services. This bill attempts to establish or adjust mechanisms for these organizations to contribute to local budgets, balancing nonprofit missions with municipal funding needs.

Potential points of contention

  • Revenue impact on nonprofits: Increased PILOT payments could strain budgets for hospitals, universities, and charities, potentially reducing services or community programs
  • Municipal fairness vs. nonprofit mission: Tension between cities seeking revenue and organizations claiming their public benefit (research, healthcare, education) justifies tax exemption
  • Standardization concerns: Determining consistent PILOT formulas across diverse organization types and municipalities may prove complex and contentious

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

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