Several Baltimore City Council members and a coalition of economic justice advocates are calling for some of Baltimore’s anchor institutions — mainly its large universities and hospitals — to contribute more to the city’s coffers to help cover the costs of the city services they use.
In a Monday afternoon press conference, they will call on the City Council to pass a bill to create a task force to review the current Payment in Lieu of Taxes (PILOT) agreement between the city and its wealthiest tax-exempt hospitals and universities. These institutions include Johns Hopkins Hospital & Bayview, Johns Hopkins University, Mercy Medical Center, St. Agnes Hospital (Ascension Health Alliance), Loyola University, and more.
Councilwoman Phylicia Porter (District 10) introduced Bill 25-0036, “Property Taxes – Baltimore City Payment in Lieu of Taxes Task Force,” to establish a task force to review the PILOT agreement in a transparent and timely way. The current PILOT agreement is set to expire in 2026.
With Us For Us, a coalition of 20 organizations focused on addressing wealth disparities in Baltimore City, released a report showing that the city’s 14 wealthiest anchor institutions pay only about 5% in PILOT payments of what they would otherwise pay in property taxes if they weren’t tax-exempt. In real numbers, that means the current PILOT agreement allows them to pay $6 million annually, collectively, towards city services instead of $110 million. With Us For Us states that the city’s Department of Finance estimates those same nonprofits, however, use around $47.6 million worth of municipal services annually.
The coalition, which includes organizations like Greater Baltimore Urban League, Metro Baltimore AFL-CIO, Jews United for Justice, and more, is not asking for these anchor institutions to lose their tax-exempt status. It is asking for a new PILOT agreement in which the institutions pay more for the services they are receiving, given that Baltimore City relies on property taxes for half its revenue.
“This legislation is an opportunity to establish a democratic, fair, and transparent process to ensure our tax-exempt anchor institutions pay their fair share,” Porter said. “As our city’s resources and services face cuts from the federal government, it’s more important than ever for Baltimore City’s institutions to show solidarity with our community.”
In March 2024, Baltimore City Comptroller Bill Henry released a report on how Baltimore’s PILOT program fared, and examined promising PILOTs in other cities, namely Boston, MA, New Haven, CT, and Providence, RI. These programs have benefited from high anchor institution engagement, assessment methods unique to their locales, community input, and city accountability, leading to much higher revenue to help cover the costs of servicing these anchor institutions.
“Baltimore City needs to close its revenue gap to pay for mandatory increases in funding for public schools, aging infrastructure, and other essential city services,” said Tykia Warden, president of Greater Baltimore Urban League. “Renegotiating the PILOT will give a much-needed boost to our city’s general funds.”
The Budget & Appropriations Committee will hear the bill on Tuesday, at 10 a.m. The hearing will be streamed live at this link.
