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Baltimore Nonprofits Fail To Pay Their “Fair Share” Of City Services

Last night the City Council ripped off one of the biggest scabs on Baltimore’s body politic – the fact that large nonprofit institutions pay no property taxes. At an informational hearing, the Council heard from advocacy groups who denounced a 2016 agreement with anchor hospitals and universities in which they agreed to pay a total of $6 million a year for their use of city services. Critics have called the Payments in Lieu of Taxes, or PILOT, a “backroom deal” passed by the Board of Estimates to allow the nonprofits to grossly underpay their fair share of taxes through June 2026. Negotiated by former Mayor Stephanie Rawlings-Blake, the deal was approved by Baltimore’s current mayor, Bernard C. “Jack” Young, when he was City Council president.

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