This program provides a payment in lieu of local property taxes (PILOT) to municipalities for private colleges, general hospitals, and free standing chronic disease hospitals. These facilities are exempt from payment of local property taxes. The PILOT payment is equal to 77% of the amount of taxes that would have been paid if the property were not exempt from taxation. The payment is made only on real estate and does not include payment for a tax loss on exempt personal property owned by these facilities. Payment is made once a year on September 30th.
Program Objective Statement
To provide State reimbursement to municipalities (including independent special taxing districts) of a sum equal to 77% of the property taxes which would have been paid to municipalities by any private, nonprofit institution of higher education or general/free standing chronic disease hospital facility, had these institutions not been tax-exempt.
Any municipality which has a private college(s) or general/free standing chronic disease hospital(s) located within its boundaries.
Fiscal Year 2020 and 2021, PA 19-117 Sec 55 set a fixed payment in lieu of taxes for college and hospital property payment on October 31st: Download PDF File
The statutory formula for Private College & Hospital PILOT has been inactive since FY 2016, as statutory payment lists have been passed each year beginning in FY 2017. As a result, the last formula‐driven PILOT payments were based on municipal grand lists from 2014, nearly 7 years ago.
Statutory References: Connecticut General Statutes (CGS): Sections 12-20a and 12-20b.
Regulatory References: Regulations of Connecticut State Agencies: §12-20b-1 and §12-20b-2.
For further information, please contact:
Martin Heft: phone (860) 418-6355 - e-mail - Martin.Heft@ct.gov.