Municipalities and districts will receive a percentage of their full PILOT calculations based on the qualifications established. The Tiered PILOT approach divides grantees into three separate tiers:
- Tier 1: Municipalities with an Equalized Net Grand List Per Capita (ENGLPC) less than $100,000, Alliance Districts, and municipalities in which the State of Connecticut owns more than 50% of the property within the town’s boundaries.
- Tier 2: Municipalities with an ENGLPC between $100,000 and $200,000.
- Tier 3: Municipalities with an ENGLPC greater than $200,000.
Grants paid to districts are calculated using the tier of the municipality in which the district is located.
Tier 1 grantees receive 53% of the total PILOT formula calculations described above, Tier 2 grantees receive 43%, and Tier 3 grantees receive 33%. Additionally, every grantee must receive at least the same amount as the sum of State-Owned PILOT and College & Hospital PILOT grants that they received in FY 2021.
Notwithstanding the statutory provisions, the following receive additional payments: $5,000,000 to Bridgeport for unspecified general PILOT support; $100,000 for the Connecticut Hospice in Branford; $1,000,000 for the United States Coast Guard Academy in New London; and$60,000for the state-owned forest in Voluntown.
Grantees receive TIERED PILOT payments on or before September 30th.
Statutory References: Connecticut General Statutes (CGS): Section 12-18b.
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State-Owned Property - Payment in Lieu of Taxes (State Owned PILOT)
This program provides a payment in lieu of local property taxes (PILOT) for real property tax losses due to exemptions applicable to state-owned real property, certain real property that is the subject of a state lease or long-term financing contract, municipally-owned airports and certain land held in trust by the federal government. Payment is made only for real property and does not include payment for tax loss on exempt personal property owned by these facilities or property used for highway purposes.
A property’s use and the amount of state-owned real property in a town have historically determined the percentage of property tax exemptions reimbursed by PILOT, which are:
- 100% for state prison facilities used for purposes of incarceration in the prior fiscal year, any portion of the John Dempsey Hospital used as a permanent medical ward for prisoners, property and facilities owned by the Connecticut Port Authority, land designated under the 1983 settlement boundary and taken into trust by the federal government for the Mashantucket Pequot Tribal Nation, and all state-owned property in a town in which the State of Connecticut owns more than 50% of the property within the town’s boundaries;
- 65% for the Connecticut Valley Hospital and Whiting Forensic Hospital; and
- 45% for all other state-owned real property, certain real property leased by the state as described in section 4b-39, municipally-owned airports and certain other real property owned or controlled by the federal government.
A grantee’s payment in any year may reflect a modification due to an audit of an amount previously paid. Since FY 2015, the four towns of Windsor Locks, Suffield, East Granby and Windsor receive a total of $4,678,571.79 directly from the Connecticut Airport Authority, for the Bradley International Airport property, regardless of actual property tax loss. This payment is not part of the State-Owned PILOT payment.
Notwithstanding the statutory formulas, town-by-town payment lists were established for both PILOT programs from FY 2016 through FY 2021.
Statutory References: Connecticut General Statutes (CGS): Sections 12-19a, 12-19b and 12-19c.
Regulatory References: Regulations of Connecticut State Agencies: §12-19b-1 and §12-19b-2.
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Colleges (Private) and General/Free Standing Chronic Disease Hospitals - Payment in Lieu of Taxes (C & H PILOT)
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.
The calculation of the full PILOT for towns and certain fire districts reflects 77% of their tax losses for the appropriate grand list. Exceptions to this calculation include the campuses of the Connecticut Healthcare Systems located in Newington and West Haven and owned by the United States Department of Veterans’ Affairs.
A grantee’s payment in any year may reflect a modification due to an audit of an amount previously paid. There is also a proportionate reduction of PILOT totals to the amount of the appropriation in any year in which funding is insufficient.
Notwithstanding the statutory formulas, town-by-town payment lists were established for both PILOT programs from FY 2016 through FY 2021
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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.
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For further information: Gregory.Lowrey@ct.gov or 860.418.6308