NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Fan Fei

Department of Economics
University of Michigan
Lorch Hall
611 Tappan Street
Ann Arbor, MI 48109-1220

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of Michigan, Ann Arbor

NBER Working Papers and Publications

April 2015Are PILOTs Property Taxes for Nonprofits?
with James R. Hines Jr., Jill R. Horwitz: w21088
Nonprofit charitable organizations are exempt from most taxes, including local property taxes, but U.S. cities and towns increasingly request that nonprofits make payments in lieu of taxes (known as PILOTs). Strictly speaking, PILOTs are voluntary, though nonprofits may feel pressure to make them, particularly in high-tax communities. Evidence from Massachusetts indicates that PILOT rates, measured as ratios of PILOTs to the value of local tax-exempt property, are higher in towns with higher property tax rates: a one percent higher property tax rate is associated with a 0.2 percent higher PILOT rate. PILOTs appear to discourage nonprofit activity: a one percent higher PILOT rate is associated with 0.8 percent reduced real property ownership by local nonprofits, 0.2 percent reduced total...

Published: Fan Fei & James R. Hines & Jill R. Horwitz, 2016. "Are PILOTs Property Taxes for Nonprofits?," Journal of Urban Economics, . citation courtesy of

 
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