Press Release  Governor Healey Creates Commission on State-Owned Land PILOT Program to Ensure Geographic Fairness 

Boston — Governor Maura Healey signed an Executive Order creating a Commission on Payments in Lieu of Taxes (PILOT) for State-Owned Land to advise her on potential reforms to the PILOT program. The state owns over half a million acres of land, such as state parks and forests, wildlife sanctuaries, beaches, and state military campgrounds. To compensate municipalities for the loss of local property taxes related to this land, the state administers a PILOT program that provides them with funding.

“We know that cities and towns rely on PILOT to deliver the services that their residents rely on. For too long, some communities, especially rural communities in Western and Central Massachusetts, have not received their fair share of this funding,” said Governor Healey. “This new Commission will drill down into what’s working with the current program and where there are areas for improvement to make sure that every community is receiving the resources they deserve.”

“As a former Mayor, I know how important the PILOT program is for our local leaders. There are ways to improve the program and make sure it is working for every community,” said Lieutenant Governor Kim Driscoll. “I look forward to following the work of this Commission and working together to make sure we are delivering for our cities and towns.”

For a long time, concerns have been raised about whether the allocation of PILOT funding is fair. Municipalities with the most state-owned land are primarily in Western Massachusetts, but they receive the lower payments than communities in eastern Massachusetts with similar acreage due to lower property values. The Commission will be charged with evaluating potential changes to the PILOT program, with particular attention to geographic equity.

The Commission’s scope will focus on land that is owned by the state and will not impact entities, such as universities, that provide PILOTs to municipalities.

Statements of Support:

Senator Jo Comerford, Northampton:

“For too long, the state’s current state owned land PILOT formula has shortchanged rural communities in western and central Massachusetts, despite the enormous contributions these communities make in stewarding the Commonwealth’s forests, farms, and watersheds. The Healey Driscoll Administration’s Commission is a welcome and necessary step toward a fair, climate-forward formula—one that values the ecosystem services our lands provide and recognizes the fiscal realities facing all 351 of our cities and towns."

Senator Paul Mark, Becket:

“Our small towns often struggle with the responsibility of stewarding our natural resources because the funding they receive from the state through pilot is inadequate. I am grateful to Governor Healey for taking this step to ensure that real solutions are developed and implemented quickly to significantly help our rural communities.”

Representative Natalie Blais, Deerfield:

“For too long, rural communities have been disproportionately disadvantaged by a flawed formula in the State Owned Land Payment in Lieu of Taxes program. While we have made tremendous progress in adequately funding the program, the establishment of this commission by the Healey-Driscoll Administration is welcome to ensure that the communities who are stewarding our natural and working lands are appropriately compensated for their service to the Commonwealth.” 

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