Page 48 - CLT032221

48 ¦ MARCH 22, 2021 CLOSING ARGUMENT

EDITORIAL BOARD

New PILOT Program Improves
State-Local Partnership

Connecticut State Capitol building in Hartford, CT. Photo by Michael Marciano
We recently called for better funding of The Private Colleges and Non-Profit Hospital
the state’s Payment In Lieu of Taxes pro- PILOT reimbursement rate is set by statute at 77
gram (PILOT) as a method of alleviating percent.
Connecticut’s worst-in-the-country property tax The policy justification for state funding of PI-
burden (see our August and October 2019 edito- LOT is that the governmental, educational and
rials). Therefore, it seems only proper for us to health care services provided by these institutions
congratulate the General Assembly and Gov. Ned serve everyone in the state and it is only fair that
Lamont on their successful passage in March of the the revenue implications of hosting those services
first major PILOT reform in decades. be shared by all taxpayers rather than solely bur-
The PILOT program compensates municipali- dening the host municipality.
ties with state funds for two major types of real PILOT reimbursements are an important ele-
property tax losses. The State Property PILOT ment in the state-local fiscal partnership. Com-
reimburses municipalities at a statutory rate of pared to our neighboring states of Massachusetts,
45 percent for state-owned property, such as De- New York and New Jersey, Connecticut’s munici-
partment of Transportation garages, public col- palities have the greatest reliance on property taxes
leges and universities, and state office buildings. at 60 percent of local revenue. Therefore, PILOT-

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