As cities "struggle with largely stagnant tax bases from a down economy and increasing pension and health care costs," it is becoming more common for these municipalities to ask their largest nonprofit landowners – property tax-exempt hospitals and colleges – for possible financial contributions, The Express-Times of Lehigh Valley Pennsylvania reports. In many instances, cities cannot legally compel a Payment In Lieu of Taxes (PILOT).
David L. Thompson, vice president of public policy for the National Council of Nonprofits, called PILOT "short-sighted" because such nonprofit institutions "tend to increase property values in their communities, thus creating a smaller budget hole for their cities in the first place." Some municipalities say they are satisfied with the money they currently receive from nonprofits and do not want to disrupt things with a PILOT request, while others maintain that PILOTS should not be used since municipalities and nonprofits alike face economic challenges, the article said. For more, read the full story.