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Office of Watershed Management
Division of
Water Supply Protection
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Payment in Lieu of
Taxes (PILOT) Program
Watershed Management
PILOT Program Description and Legislation
The Watershed Management PILOT program is the method that the DCR
compensates communities which contain the land and water bodies that comprise
one of the nation's largest unfiltered water supply systems. The Payment
in Lieu of Taxes program guarantees regular and stable payment to the
29 communities shown below.
The Watershed Management PILOT program is mandated by Massachusetts General Laws Chapter 59, Section 5G . This
legislation updated old payment laws MGL Chapter 59 Sections D, E, &
F, which were written in the 1940s, and did not value lands in all communities
currently entitled to payments. The current PILOT law was first ratified
in 1984 for the Quabbin Reservoir and Ware River watersheds. The law was
amended in 1987 to include communities in the Wachusett and Sudbury Reservoir
watershed.
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How
Watershed Management PILOT payments are determined
The Watershed Management PILOT amount is determined by multiplying
the Department of Revenue (DOR) valuation of DCR Division
of Water Supply Protection land by the local commercial tax rate. DOR
is responsible for setting the value of state-owned land every four years,
pursuant to their guidelines on segmenting lands into prime lots (the
requisite frontage and area needed to build a single family home in each
community), rear acreage and unbuildable acreage, as well as discount
adjustments for the total number of prime lots and total acreage. DCR's
permanently protected open space, therefore, is valued as if it is still
potentially developable land and then the PILOT is calculated using the
same rate structure as commercial or industrial property.
The latest DOR revaluation took place in the first half
of the year 2009; the results are reflected in the FY2010 PILOT amounts.
The revaluation takes into account all lands purchased by the DCR over
the previous four years as well as any changes in land values.
Legislative provisions state that the Watershed Management PILOT
payment can NEVER be less than that of the previous year, even if the
value of the land or tax rates decrease.
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Where Watershed
Management PILOT funds come from
Money for the PILOT program comes from the Massachusetts Water
Resources Authority (MWRA) rate payers
who use the reservoir waters. They pay their water bills to the MWRA,
which provides the DCR with the funds needed to make the PILOT payment.
The DCR makes an annual payment in full to each community in the program.
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Watershed Management PILOT
values
Since 1985, over $94 million has been distributed in watershed protection
PILOT payments. The significant increase every four years represents the integration
of the DOR revaluation that takes into account land acquisition and changes
in land values.
Please click on the appropriate date to see a break down
by community of the Payment in Lieu of Taxes made by DCR Office of Watershed
Management.
| YEAR |
Total Watershed Management PILOT |
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$7,653,312 |
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$7,321,281 |
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$7,000,366 |
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$6,741,130 |
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$6,107,378 |
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$6,226,338 |
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$5,969,049 |
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$5,919,709 |
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$5,076,573 |
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$5,029,106 |
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$4,965,870 |
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$4,911,470 |
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$4,876,535 |
2000 |
$3,113,761 |
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Frequently
Asked Questions about the Watershed Management Payment in Lieu of Taxes
Program
Department of Revenue City and Town newsletter issue on Payments in Lieu of Taxes
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