OPM: Colleges (Private) and General/Free Standing Chronic Disease Hospitals

Colleges (Private) and General/Free Standing Chronic Disease Hospitals - Payment in Lieu of Taxes

Program Description

This program provides a payment in lieu of local property taxes (PILOT) to municipalities for private colleges, general hospitals, and free standing chronic disease hospitals. These facilities are exempt from payment of local property taxes. The PILOT payment is equal to 77% of the amount of taxes that would have been paid if the property were not exempt from taxation. The payment is made only on real estate and does not include payment for a tax loss on exempt personal property owned by these facilities. Payment is made once a year on September 30th.


For further information, please contact:
Martin Heft: phone (860) 418-6355 - e-mail  - Martin.Heft@ct.gov.


Program Objective Statement

To provide State reimbursement to municipalities (including independent special taxing districts) of a sum equal to 77% of the property taxes which would have been paid to municipalities by any private, nonprofit institution of higher education or general/free standing chronic disease hospital facility, had these institutions not been tax-exempt.



Any municipality which has a private college(s) or general/free standing chronic disease hospital(s) located within its boundaries.


Grant Activity

Fiscal Year 2018 and 2019:  PA 17-2 Sec 591 set a fixed payment in lieu of taxes for college and hospital property payment on October 31st: Download PDF File


Key Dates

By March 1 - Distribute Claim forms to municipalities for Claims to be included on Payment List to be certified on September 1.


By April 1 - Receive completed Claim forms back from municipalities to be included on Payment List to be certified on September 1.


By September 15 - Prepare and certify Payment List for the Comptroller for Claim forms submitted by municipalities by April 1.  The Claims are for assessments from the 2011 Grand List.


By September 30 - Payment by the Treasurer.


Statutory References

Connecticut General Statutes (CGS): Sections 12-20a and 12-20b.


Regulatory References

Regulations of Connecticut State Agencies: 12-20b-1 and 12-20b-2.


Funding Source(s)

State: General Fund (100%).


Account Number

Fund: 11000 SID: 17006 - Dept.:  OPM20600


Catalogue of Federal Domestic Assistance (CFDA) Number

Not applicable.


General Statement of Process

Mails Claim forms requesting all municipalities to provide OPM with the assessed valuation of tax-exempt real property for private colleges and general/free standing chronic disease hospitals. Processes requests for penalty waivers; assesses penalties if necessary. Receives completed Claim forms back from municipalities. Modifies, approves or denies Claims and notifies municipalities in writing of any modification of Claims. Prepares and certifies Payment List for Comptroller. Prepares Year-end Report for the General Assembly.

Content Last Modified on 8/30/2018 3:39:57 PM