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Budget committee directs staff to study voluntary PILOT program
Summary
The Minneapolis City Budget Committee voted June 8 to direct staff to research a voluntary Payment In Lieu Of Taxes (PILOT) pilot, after debate about revenue potential and which institutions might participate. The motion carried by voice vote; the transcript records no numerical tally.
The Minneapolis City Budget Committee on June 8 voted to direct staff to research a voluntary Payment in Lieu of Taxes (PILOT) pilot intended to generate new revenue from organizations that use significant city services but do not pay property taxes.
Council Member Wonsley, who moved the staff directive, said the research follows an earlier report comparing Minneapolis to peer cities and highlighting the city’s heavy reliance on property taxes. “The report showed that we could collect between $10 million to $19 million” from a pilot program, Wonsley said, urging colleagues to evaluate institutions that could participate and the fiscal data the city would need to consider implementation.
The motion—moved by Council Member Wonsley and seconded from the dais—drew questions from colleagues about which organizations might be invited to participate and what voluntary payments would mean for costs carried by families. Council Member Rainville asked which types of organizations the pilot might target; Wonsley said the report cited higher-education institutions, healthcare providers and cultural organizations as possible candidates. Council Member Warren asked whether voluntary payments could indirectly affect costs for students; Wonsley replied the pilot would be voluntary and not a new tax.
The committee approved the staff-direction motion by voice vote; the chair announced “the ayes have it and that motion carries.” The transcript does not record a numerical roll-call tally for the vote. The committee’s action directs staff to return with research and analysis on design options, potential participants and projected revenue impacts for council consideration.
The item was presented as a staff direction rather than a policy change; any formal program, or any required state-level authorizations, would require further legal and policy review and subsequent council action. The committee did not adopt any PILOT program in this meeting and requested more information to inform future deliberations.
