Is there any exception where PILT may be paid for third party tenants in Crown properties?
A. Yes, one of the changes to the PILT Act is that for tenancies or other occupancies of less than one year, the space under short-term occupancy should be considered federal property and thus PILT eligible. Another situation where a PILT may be paid on property leased to a third party tenant is when the federal government acquires property from the private sector that has existing leases. The federal government would respect the fact that under those existing leases the landlord would pay the property taxes to the taxing authority and collect the tenant’s share of the taxes as part of the rent. Therefore, PILT would be paid on those leases until they expire and once renegotiated, that tenant would be responsible for the taxes and that space would no longer be PILT eligible.
