A Maine legislator has introduced a bill to allow communities to levy payments in lieu of taxes (PILOTs) against tax-exempt organizations if their CEO makes a certain salary of more than twice the median household income of the county where the organization is located.

According to a report from the National Council of Nonprofits, PILOT programs, which exist in other cities such as Boston, Philadelphia and Baltimore, are more typically tied to the value of real estate owned by a tax-exempt institution such as a university or museum. The payments, which are typically voluntary, are often justified on the basis that city nonprofits receive services but are not currently paying regular taxes for land or utility usage.

MSAE will continue to monitor this proposal.