PILOT Discussions Continue in St. Paul

August 17, 2017 at 12:39 pm

PILOT stands for “payment in lieu of taxes,” a method used by local governments to receive revenue from organizations that are exempt from property taxes, yet still receive the benefits of local services.

One year ago, the Minnesota Supreme Court ruled that right-of-way assessments in St. Paul were taxes, not fees, meaning that non-profit organizations were exempt from the assessments. In response to a potential loss of tens of millions of dollars in tax revenue, city leaders have been exploring ways to use PILOT or SILOT (services in lieu of taxes) to replace the lost revenue, rather than immediately increasing the property tax levy or cutting the city’s budget.

NAIOP Minnesota works tirelessly to keep local governments accountable for property tax levels or increases. The Supreme Court decision has been a welcome victory for transparency in local taxation. Efforts by the City of St. Paul to find a reasonable and public solution to this revenue issue have improved taxpayer understanding of how local budgets work.

In August, a Citizens League task force is expected to complete its work analyzing potential solutions for the City of St. Paul. Kaye Rakow, formerly having championed NAIOP Minnesota’s public policy initiatives, is co-chairing the task force.

Entry filed under: Featured Articles, Public Policy | Government Affairs.

State Tax Receipts Down Slightly State Budget: Repeal of the Statewide Business Property Tax may be at risk


For more information about NAIOP Minnesota, visit www.NAIOPMN.org.

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