OPM: State-Owned Property Payment in Lieu of Taxes

State-Owned Property - Payment in Lieu of Taxes

Program Description

This program provides a payment in lieu of local property taxes (PILOT) for property owned and used by the State of Connecticut. The payment is equal to a percentage of the amount of taxes that would be paid if the property were not exempt from taxation. The payment percentages are 100% for facilities used as a correctional facility, 100% Mashantucket Pequot Tribal land taken into trust by federal government on or after June 8, 1999, 100% for any town in which more than 50% of all property in the town is state-owned real property, 65% for the Connecticut Valley Hospital facility, and 45% for all other property.   Payment is made only for real property and does not include payment for tax loss on exempt personal property owned by these facilities or property used for highway purposes. 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 towns of up to 45% of the property tax loss on eligible state-owned real property (capped at the appropriate percentage of the net real property tax levy for the year), 65% of the tax loss for Connecticut Valley Hospital and 100% of the tax loss on qualifying correctional facilities (i.e. prison and jail facilities).



Any town in which qualifying state-owned real property is located.


Grant Activity


Fiscal Year 2018 and 2019:  PA 17-2 Sec 592 set a fixed payment in lieu of taxes for state owned property payment on October 31st -- download PDF file


Key Dates

By March 1 - Distribute M-37 Claim forms to towns for Claims to be included on Payment List to be certified on September 15.


By April 1 - Receive completed M-37 Claim forms back from towns for Claims to be included on Payment List to be certified on September 15.


By August 1 - Mail final notice to towns regarding modifications to M-37 Claim forms submitted by towns by April 1.


By September 15 - Prepare and certify Payment List for Comptroller for Claims submitted by towns by April 1.


By September 30 - Pay Claims submitted by April 1.

Statutory References

Connecticut General Statutes (CGS): Sections 12-19a, 12-19b and 12-19c.

Regulatory References

Regulations of Connecticut State Agencies: 12-19b-1 and 12-19b-2.

Funding Source(s)

State: General Fund (100%).

Account Number

Fund: 11000 SID: 17004 - Dept.: OPM20600.

Catalogue of Federal Domestic Assistance (CFDA) Number

Not applicable.

General Statement of Process

Mails Claim forms to towns. Receives completed Claim forms back from towns. Processes requests for penalty waivers; assesses penalties. Reviews Claims for accuracy and completeness. Modifies, approves or denies Claims and reconciles modifications with towns. Notifies towns of any reevaluation of state-owned real property due to Claim reviews. Prepares and certifies Payment List for Comptroller. Prepares data for inclusion in Year-end Report to General Assembly.

Content Last Modified on 10/31/2018 9:57:25 AM