Bill > S2016

This bill proposes an amendment to Massachusetts tax law that allows cities and towns to require certain tax-exempt organizations to make partial payments in lieu of property taxes (known as PILOT payments). Specifically, if a municipality votes to accept this provision, organizations that are exempt from taxation and own property valued at $15 million or more would be required to pay 25 percent of what they would owe in property taxes if their property were not tax-exempt. The bill includes an important exception for "High Public Payment Hospitals" as defined by the state's Executive Office of Health and Human Services, which would be exempt from these PILOT requirements. Additionally, municipalities that choose to implement this provision must create an ordinance or bylaw that establishes a framework for negotiating these payments, which can include potential exemptions, consideration of community benefits, and procedures for administering the payments. The bill gives local governments more flexibility in generating revenue from large tax-exempt property owners while providing some discretion in how these payments are structured.

Budget and Finance

https://malegislature.gov/Bills/194/S2016