Exempt nonprofits might chip in for property taxes

Will the city soon reap millions in voluntary payments from nonprofits?

Currently, many nonprofits are exempt from paying property taxes. But they used to chip in anyway. In 1995, the city took in more than $9 million annually from voluntary “payments in lieu of taxes,” or PILOTs. But then a 1997 state law made it more difficult for the city to negotiate PILOTs, and in 2011, the city received only $383,700 from the agreements.

A state Supreme Court ruling just came down that changes all that, though, and legal experts say that PILOTs are going to make a comeback. In today’s podcast, Holly Otterbein and WHYY producer Elisabeth Perez-Luna discuss the major change.

Check out the It’s Our Money podcast, and find more at www.ourmoneyphilly.com.

Do you have a rant, rave or question about your experience with city services?  Let us know at the It’s Our Money “City Howl” desk, (215) 854 5855 or email howl@phillynews.com.

 

It’s Our Money is a joint project of the Daily News and WHYY, funded by the William Penn Foundation. We shed light on where your tax dollars are going.

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