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Council requests fuller list of tax-exempt properties as assessor considers pilot PILOT program; item tabled for 90 days
Summary
The Committee on Finance asked the assessor and treasurer for a fuller accounting of tax-exempt properties and directed staff to return with assessed values and estimated tax equivalents as the city explores pilot PILOT arrangements.
Councilors asked the assessor and treasurer for more detail about tax-exempt properties and discussed whether a pilot payment-in-lieu-of-taxes (PILOT) program might be appropriate for some nonprofits and vacant churches.
Council President Naomi Carney's motion requested that the Treasurer's Office provide a report listing all tax-exempt properties, their assessed values, active/vacant status, and years vacant where applicable. Assessor Sherry told councilors she ran the list and confirmed four vacant churches were put back on the tax roll; she said many exemptions still require state forms to remain exempt and that she intended to give property owners 30 days to rectify missing documentation before making some parcels taxable. Sherry agreed to provide a column showing fiscal-2025 tax equivalents (what their taxes would be under the FY25 rate) and the total assessed value for the listed properties.
Treasury/CFO Bob reported that, as of the valuation process, the assessed value of exempt property totaled roughly $2.054 billion across 1,555 exempt properties, though many are city-owned and not collectible. He cautioned that simply taxing exempt properties would expand the tax base and shift rates rather than automatically increasing city coffers. Councilors and staff discussed that some larger nonprofits already participate in PILOT arrangements while many smaller nonprofit properties do not.
Councilors sought a list of which exempt properties already participate in PILOTs, the total assessed values for properties on the list presented at the meeting, and a column estimating FY25 tax amounts for each property. Assessor Sherry said she will finalize the list by November and the committee voted to table the matter for 90 days so the assessor can provide values, tax equivalents, and compliance status. The assessor indicated she will flip exemptions to taxable status in November for those that do not supply required documentation.
