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Finance staff seeks legal opinion on PILOT formula as Light Department readies building sale
Summary
The Finance Committee recorded that staff is awaiting a legal opinion on the PILOT formula; finance staff said a Massachusetts general law cited by the Light Department does not remove its obligation to participate in the town's PILOT program, and the Light Department will return to Town Meeting regarding the sale of a building.
Committee members discussed the town’s Payment in Lieu of Taxes (PILOT) program and an outstanding legal question about how the formula should be calculated. Finance staff said they are awaiting a legal opinion on the correct formula.
According to the meeting record, the Light Department has referred to a Massachusetts general law it interprets as an exemption from taxation. Finance staff responded that the existence of that law does not eliminate the Light Department’s obligation to ensure it pays its fair share to the town under any applicable PILOT agreement. The transcript records that the Light Department will return to Town Meeting for approval related to the sale of a building; the Finance Department said it would work with the Select Board Chair to ensure information about the sale is disseminated ahead of that meeting.
No legal opinion was recorded in the March 11 minutes; the committee identified the matter for follow-up and staff indicated next steps would include securing the legal interpretation and coordinating public outreach before the Town Meeting.
