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S 1836

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

193rd Legislature (2023-2024) Introduced by Pat Duffy and 5 co-sponsors

Bill examines or modifies payments that tax-exempt organizations must make to Massachusetts municipalities to offset lost property tax revenue and service costs.

Accompanied a study order, see H5161
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Bill Summary · S 1836

Legislative bill overview

S 1836 addresses payments in lieu of taxation (PILOT) made by tax-exempt organizations in Massachusetts. The bill, which has been under committee review with multiple reporting date extensions, appears designed to examine or modify how exempt organizations—such as nonprofits, hospitals, and educational institutions—compensate municipalities for services they utilize despite their tax-exempt status.

Why is this important

Tax-exempt organizations occupy significant property in Massachusetts cities and towns while contributing no property tax revenue, placing fiscal burdens on local governments for services like police, fire, and infrastructure. PILOT programs are a key mechanism through which municipalities attempt to recover some costs, making this legislation relevant to municipal budgets and the financial sustainability of local services.

Potential points of contention

  • Burden on nonprofits and institutions: Increased PILOT requirements could strain organizations like hospitals, universities, and charities that argue they already provide community benefits through services and employment
  • Municipal revenue expectations: Communities relying on PILOT payments may have competing interests regarding payment levels, consistency, and enforcement mechanisms
  • Scope and fairness: Determining which organizations should pay, how much, and whether payments should be standardized statewide versus negotiated locally creates inherent policy tensions

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

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