Bill
HD 3587
Overview: HD 3587, An Act to reform payments in lieu of taxes for state-owned land, proposed bill, introduced November 29, 2025.Purpose and Intent: The purpose of this legislation
Overview: HD 3587, An Act to reform payments in lieu of taxes for state-owned land, proposed bill, introduced November 29, 2025.
Purpose and Intent: The purpose of this legislation is to address the longstanding issue of municipalities not receiving adequate compensation from the state for state-owned land within their borders. The bill aims to establish a more equitable and transparent system for payments in lieu of taxes (PILOT) to ensure that cities and towns are not unduly burdened by the presence of state-owned properties.
Key Provisions:
- Requires the state to pay municipalities an amount equal to the full property tax that would be owed on state-owned land and buildings
- Mandates the state to conduct regular property value assessments to determine the appropriate PILOT amounts
- Establishes a PILOT review board to oversee the process and hear appeals from municipalities
- Provides a mechanism for the state to negotiate PILOT agreements with cities and towns in cases where full property tax equivalents are not feasible
Affected Parties and Impacts:
- Municipalities will benefit from increased revenue to offset the costs of providing services to state-owned properties
- The state government will need to allocate additional funding to meet the new PILOT requirements
- Taxpayers in municipalities with significant state-owned land may see reduced property tax burdens as a result of the increased PILOT payments
Procedural and Timeline Considerations:
The bill has been introduced in the state legislature and is currently under review by the relevant committees. If passed, the new PILOT system would be phased in over a 3-year period to allow the state and municipalities to transition to the new requirements.
Compiled from official sources — confirm details with the bill’s official record.
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