Politics & Government

PILOT Projects

Payment in Lieu of Taxes Hard to Come By


Inviting nonprofit organizations to willingly give money to the town is a touchy matter, the selectmen have found out. It's not that any school, church or other nonprofit organization is uncharitable, but with their own constituencies and balance sheets to maintain, paying money in lieu of property taxes is not going over very well.
The selectmen sent letters to the 35 or so organizations suggesting a way of achieving a fair PILOT (payment in lieu of taxes) to the independent schools, the Boston Archdiocese and other programs with real estate in town. The board customized the letter so that it was not a blanket appeal for funds, which is a feature of most nonprofits.
"They have to give to maintain their nonprofit status," said Selectman Greg Howes. "We do have some sympathy."
But the nonprofits also benefit from police and fire services that homeowners are taxed for, and the institutions are not.
"They all have a desire to collaborage but it's harder to find a formal way of donating," said Howes.
The board said nonprofits all listed ways in which they contribute to the community, and each one gives different things.
"It's a goal worth having," said board Chairman Jeff Wieand. But the letter did not produce the results the board had hoped for.
Wieand said he would divvy up the nonprofits among the five board members and try to match a selectmen with organizations they are aligned with.
"This has been a great education for me to find out what institutions do," said board member Stanly Black. "Every one donations in some fashion."
Selectman Elise Woodward said the initial solicitations showcased the "rich assortment of our resources and what the organizations provide."
Wieand said the letters arrived "unannounced."
"I'd have been surprised to get a precedent-setting gift," said Wieand. "Many of them do give."
Woodward said the follow-up should include a personal solicitation.
Black suggested using a "more delicate" approach.
Wieand said the town did not ask for anything specific.
Selectman Carmin Reiss said those intitutions that are on town water and sewer pay fees for the service. She wondered if there were a way to quantify what police and fire costs taxpayers.
Town Manager Chris Whelan said the town is prohibited from charging for police and fire.
"We can't charge, but is there a value we can put on it," asked Reiss.
The Boston Archdiocese would pay about $71,000 in property taxes, Whelan said, of which he estimated that approximately 12 percent of it is police and fire services.
Howes said it wasn't the money, but the consistency of the contributions that mattered more.

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