Tax‑Exempt Properties Rise as Cities Cope with Shrinking Tax Bases

Summary:
Many U.S. cities are facing a growing challenge: as the share of property owned by governments, hospitals, universities and other tax-exempt entities expands, the taxable base shrinks and the remaining owners increasingly bear the burden. The article shows that in 16 of the 20 most populous cities the exempt share of assessed value rose between 2006 and 2011, significantly reducing potential tax revenue. Even when cities negotiate voluntary payments in lieu of taxes (PILOTs) from exempt institutions, those payments typically cover only a tiny fraction of what full taxation would generate — making them more of a stopgap than a full solution to the structural problem of eroding local tax bases.

Full Text:
https://www.governing.com/archive/gov-tax-exempt-properties-rise.html