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SACB � Project Plan far Development of PILOT for tho City of Springfield i'age 2 Massachusetts malces small partial payments to local communities for some categories of state-owned park and conservation land, and for some privately held land that i s held for conservation purposes. The Department of Revenue values the state owned land every five years and communities receive small partial reimbursements �ata� year with the annual distribution of state aid. Under Chapter 61 communities also receive a partial reimbursementfor land privately owned and maintained for forestp�,u�nses after the owners agree to �e��s the land in active forest use of 10 year intervals. Additionally the Massachusetts Water Resources Authority (MWRA), thorough the NIDC Division of Watershed Managementpays corn��,u�.i�ies directlyfor MWRA property held for drin.lcizig water protection purposes. However in Massachusetts, un��ice Connecticut there is no state reimbursement for large state institutions liZce colleges, or for private tax exemptinstitutions.The reimbursementis essentiallylimited to apartialpaymentfor land. In 1997 the Massachusetts legislature rejected a Connecticut style reimbursement program. Federal Programs The federal gav�rnrne�t makes contributionsto counties n 49 states and the Districtof Columbia for tax-exempt, federally managed land. Those payments �cn..c�vv� as �'Si,'C` payments) considerthe amount of federally managed land in the county (not including officebuildings, militaryfacilities or correctional facilities), the county's populationand other revenue shared with the county. These govemnent-sponsored payments face criticism, however, for being insufficiently funded. Since these programs are subj ectto annual appropriation, the total amount of funds a�ailable to �vc�l governments is determined each year. Funding rarely if ever approaches authorized levels, and local govemnent groups argue the payments are insufficientcompensation for the loss of taxable property. Other types of PILOT programs: In some cases PILOTs are used for other purposes, such as economic developmenttax incentives. In this case, �'II.O�'s can provide for a negotiated reduction n property taxes for a business. However, these arrangements involve private, for-profitbusinesses that are not normally exempt fro� taxes, are typically established by local industrial or economic development agencies and result in lost revenue, not additional revenue. The Cities of Memphis and Knoxville, Tennessee are well known for utilizing PILOTs to encourage investment into their downtowns. These types of PILOTs are similarto the Chapter 121f�. conceptutilized in Massachusetts. No statistics are keut nationallv on the number of PILOTs in local iurisdictions. or on the amounts collected. There are occasional regional studies conducted on the subject, but suiprisin$Iy no national municipal or state organizations (Intemational Cit_y Mana�ers A�.��.i:di�nr GovemmentFiv�u�� Officers Association, U.S. Conference t��'nr�� National League of State Legislators, etc.) or academic institution or association collects the information on a regular basis. However, there is ample evidence that some jurisdictionsha�e been more aggressive in soliciting PILOTs from local nonprofit organizations over the past 20 years — particularly as the fiscal plight of many urban communities has worsened. �.�`. Ryan Associates, Ine. September 16,2005