Nantucket considers payments from nonprofits exempt from property tax

The Nantucket Select Board discussed whether nonprofits on the island should contribute financially to the town despite being exempt from property taxes under state law, according to ack.net.

Nonprofits on Nantucket own nearly $7 billion in property, including conservation, charitable, health, social service, religious, and educational organizations, which are exempt from property taxes because of the public benefits they provide.

Board members acknowledged that these nonprofits still use town services such as schools and utilities, and expressed interest in exploring payments in lieu of taxes (PILOT) to help offset these costs, though they are currently against pursuing such a project.

State law prevents the town from requiring nonprofits to make PILOT payments, and currently only the Nantucket Housing Authority voluntarily pays $7,500 annually under such an agreement, as noted by the town assessor.

The Select Board is considering ways to capture revenue typically generated through property taxes but faces legal and practical challenges in implementing PILOT programs for nonprofits.