What does PILOT stand for?

PILOT stands for Payment in Lieu of Taxes. This financial arrangement is used by municipalities to receive compensation for services provided to properties that are exempt from regular property taxes, such as non-profit organizations, government-owned properties, or certain industrial sites.

In these situations, instead of paying traditional property taxes, the entity makes a PILOT payment, which helps to ensure that the municipality still receives some revenue to support public services. This can be especially crucial for local governments, as it mitigates the financial impact that tax-exempt properties may have on their budgets.

The other terms listed do not accurately reflect the established meaning of PILOT. For instance, the concepts related to infrastructure payments or loans do not align with the typical use or definition of PILOT as understood in public finance and taxation contexts.