Following in Boston’s footsteps, Belmont next week will ask local nonprofits, which own 31% of the land within its borders, to voluntarily increase the amount they pay to the town in lieu of taxes, known as PILOT payments. Belmont’s board of assessors will shortly send a letter to each of 38 nonprofits, asking them to contribute 4.2 cents per square foot of land per year to help cover the cost of public works, police, and fire services, according to reports in the Belmont Citizen-Herald and The Boston Globe. “If each nonprofit participated in the PILOT program, the town would gain $533,657.42 in annual revenue, essentially the Fiscal Year 2013 budget gap the town is working to close,” the Citizen-Herald reported. Previous appeals to larger local nonprofits did not substantially increase Belmont’s tax revenue: since January 2010, the town has received $37,799 from nonprofits, including the Lions Club, Belmont Housing Authority, and the Holy Cross Armenian Catholic Church, the paper reported. Belmont Hill and Belmont Day Schools reportedly cited the poor economy for their lack of payment. More and more municipalities, facing revenue shortfalls, are attempting to ask nonprofits to increase their PILOT payments. However, an organization that is deemed nonprofit or charitable is exempt from federal and state taxes because such institutions are thought to enhance the general welfare and relieve the burdens of government.
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