Just the Facts: Milton’s PILOT program
Part one of a three-part series by Doug Scibeck.
What is the PILOT program?
Milton recognizes that non-profit organizations contribute directly to the quality of life within the community and welcomes them to the town. In order to maintain the financial health of the community so as to continue to provide a range of quality services, the Town must preserve its existing tax base and expand revenue sources where reasonably possible. It is the Town policy to distribute the burden of cost in a fair method among all users of services: citizens, taxpayers and non-profit institutions. (View the full PILOT Program Charge, PDF)
The Town of Milton is fortunate to host many businesses and institutions. These contribute to the community in many ways not least of which is revenue to the town through taxes. Some institutions, Curry College, BID-Milton Hospital, and Milton Academy, are exempt from paying most taxes according to Massachusetts General Law.
The benefits these organizations offer the town are more than just financial. The intangibles such as the convenience of having a hospital and emergency room in town are difficult to quantify but need to be considered.
These big three institutions are part of the community. There is more to contributing to the civic life than just paying taxes, however, the town does need to pay for all the services rendered. The tax rates for Milton are a commercial rate of $21.90 for $1,000 of assessed value, and a residential rate of $13.81 for $1,000 of valuation.
Tax Benefits
The Big Three institutions do pay some taxes to the town for properties owned that do not fall into exempt status, such as some offices or residences. Listed below are the valuations for the properties owned separated by exempt or taxable status; also listed is the Fiscal Year 2018 amount of taxes each institution owed (highlighted in green) as well as the amount of potential taxes each would owe if the total value of their property was subject to taxes (highlighted in red).
To be clear, the amounts listed as TAXABLE/ACTUAL TAXES are what each institution actually pays.
The total potential tax is a calculated tax total if there were no exemptions. For Curry College, Milton Hospital, and Milton Academy the total taxes paid to Milton for FY18 $299,040.26. If the majority of their properties were not tax exempt the amount owed to the town would be $8,690,336.02.
Calculated Taxes on Assessed Values and Actual Taxes – FY 2018
| VALUE | TAX RATE | TOTAL IF TAXABLE/ACTUAL TAXES | ||
| Curry College | EXEMPT | $143,831,600.00 | $21.90 | $3,149,912.00 |
| TAXABLE | $519,100.00 | $21.90 | $11,368.00 (actual) | |
| Total Value | $144,350,700.00 | Total Potential Tax | $3,161,280.00 | |
| Milton Hospital | EXEMPT | $92,136,492.00 | $21.90 | $2,017,789.17 |
| TAXABLE | $8,481,300.00 | $21.90 (partially $13.81) | $170,604.89 (actual) | |
| Total Value | $100,617,792.00 | Total Potential Tax | $2,188,394.06 | |
| Milton Academy | EXEMPT | $147,196,100.00 | $21.90 | $3,223,594.59 |
| TAXABLE | $8,477,000.00 | $13.81 | $117,067.37 (actual) | |
| Total Value | $155,673,100.00 | Total Potential Tax | $3,340,661.96 |
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