The Bureau of Local Assessment (BLA) plays a central role in the State-Owned Land (SOL) Payment In Lieu Of Taxes (PILOT) program. BLA determines the fair cash value of certain tax-exempt land owned by the state. These values are used to calculate the payments that cities and towns receive each year through the Cherry Sheet.
Many communities in Massachusetts have large areas of land owned by the state government. These include state forests, parks, conservation areas, public universities, and prisons. Because this land belongs to the state and serves public purposes, municipalities cannot collect regular property taxes on it.
The SOL program, which began in 1910, helps make up for this lost revenue by providing towns and cities with payments from the state. PILOT payments only cover the land itself and not buildings, roads, or other structures.
Not every piece of state-owned land qualifies for the program. To be eligible, a parcel must meet three main criteria:
- it must be owned by specific state agencies or used for listed public purposes
- it must have been taxable (not already exempt) at the time the state acquired it (with a few exceptions, such as certain fish and game lands), and
- it must not include buildings or improvements.
Qualifying examples include state forests, recreational and conservation lands managed by the Department of Conservation and Recreation (DCR), University of Massachusetts properties, certain correctional facilities, specific reservations like Wachusett Mountain and Mount Greylock, and certain wildlife sanctuaries or solid waste facilities. Land owned by other state agencies, such as many general government buildings or National Guard armories, is usually not eligible. New land purchases or sales are added or removed each year using per-acre values specific to that municipality. The Commissioner of Revenue finalizes the values by June 1.
Each year, the state legislature decides how much money to set aside for PILOT payments and communities gets a share based on the value of their eligible state land compared to the statewide total. These payments appear on the Cherry Sheet. Certain watershed lands have separate payments handled directly with the Department of Conservation and Recreation (DCR).
Local assessors do not calculate the PILOT values. The Bureau of Local Assessment handles valuation centrally for fairness and consistency. Assessors play a key supporting role, though. When the state notifies BLA about new land purchases, sales, or transfers between agencies, assessors review the information in the DLS Gateway State-Owned Land module. They verify the details and upload required documents, such as the recorded deed or order of taking, along with recent tax records. This work must be completed by March 1 to keep the state database accurate and up to date. Assessors also help confirm whether a parcel meets the eligibility.
Municipalities can review proposed changes to equalized valuations every two years and participate in informal hearings if questions arise. Final state-owned land values and estimated Cherry Sheet payments are available on the DLS Gateway and the DLS Databank.
For more information on state-owned land valuations, please see our Frequently Asked Questions resource on the subject. For assistance or questions, contact bladata@dor.state.ma.us.
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City & Town is brought to you by:
Editor: Dan Bertrand
Editorial Board: Tracy Callahan, Sean Cronin, Janie Dretler, Brianna Ortiz, Christopher Ketchen, Paula King, Jen McAllister, Jessica Sizer and Tony Rassias
| Date published: | April 2, 2026 |
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