PILOT Savings

Compare a PILOT payment and costs with standard property tax.

Description

A payment-in-lieu-of-taxes scenario compares baseline tax with the negotiated payment and associated agreement costs.

A payment-in-lieu-of-taxes scenario compares baseline tax with the negotiated payment and associated agreement costs. Gross and net savings distinguish those costs.^[1]

Compare a PILOT payment and costs with standard property tax.

When to use PILOT Savings

Use this tool to compare a PILOT payment and costs with standard property tax.

Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.

How to use PILOT Savings and understand its results

Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
Enter standardPropertyTax, pilotPayment, agreementCosts using the field table and calculation rules, then run the tool.
Read grossTaxSavings, netSavings, effectiveDiscountPercent. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
standardPropertyTax	Standard property tax	number; minimum: 0	Required
pilotPayment	PILOT payment	number; minimum: 0	Required
agreementCosts	Agreement costs	number; minimum: 0	Required

Enter positive baseline tax and nonnegative payment/agreement costs. Return gross/net savings and gross savings as a percentage of baseline. Negative savings are allowed.

grossSavings=baselineTax−payment; netSavings=grossSavings−agreementCosts

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
grossTaxSavings	Gross tax savings	number
netSavings	Net savings	number
effectiveDiscountPercent	Effective discount (%)	number

json

{
  "input": {
    "standardPropertyTax": 1000,
    "pilotPayment": 700,
    "agreementCosts": 50
  },
  "output": {
    "grossTaxSavings": 300,
    "netSavings": 250,
    "effectiveDiscountPercent": 30
  }
}

Limitations and assumptions

The agreement and baseline are supplied. Eligibility, duration, escalation and legal enforceability are not evaluated.

Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use TIF Revenue Increment: Calculate captured tax-increment revenue from caller-supplied values and rates. For a complementary task, use Tax-Holiday Savings: Calculate sales-tax holiday savings using caller-supplied rates and cap.

References

PILOT Savings — tool.io

Similar or alternative tools

TIF Revenue Increment
Calculate captured tax-increment revenue from caller-supplied values and rates.
Tax-Holiday Savings
Calculate sales-tax holiday savings using caller-supplied rates and cap.