How many kinds of PILT are there? How is each calculated?
A. There are five kinds of charges against real property for which payments in lieu are made: • Payments in lieu of real property taxes – PILT are the product of the federal property value multiplied by the effective tax rate plus any mitigation measures and is paid on an annual basis. • Payments in lieu of frontage or area charges – These are similar to improvements and betterment charges, for instance, the installation or repair of sanitary and storm sewers or street lighting. PILT are calculated by multiplying an applicable rate by a dimension of the property, such as the frontage or area. The total eligible cost for the improvement is calculated and then billed either as a one-time payment, or debentured and billed in annual installments. • Payments in lieu of service charges – For municipal services not included in the tax rate, like unmetered water or garbage collection for example. To be eligible, these must be set as annual flat rate charges for a service provided to all proper
