From Confrontation to Congruence: The Potential Role of Payments in Lieu of Taxes in the Economic Development Conversation

21 Pages Posted: 26 Jun 2015

See all articles by Fred Mayhew

Fred Mayhew

James Madison University - Department of Political Science

Tammy Renea Waymire

Northern Illinois University - Department of Accountancy

Date Written: Summer 2015

Abstract

This study uses survey and interview methodologies to gain an understanding of the scope of payments in lieu of taxes (PILOTs) in Illinois municipalities. While the number of PILOTs in this setting is consistent with previous studies, less revenue is generated. We find that while PILOTs can generate revenue, greater potential lies in their ability to broaden the economic development discussion, expanding stakeholder involvement and increasing the potential for collaboration. Drawing upon a proposed economic development model, we present recommendations to encourage participation in economic development efforts by nonprofit organizations, which may otherwise have inherent incentives to resist PILOTs.

Suggested Citation

Mayhew, Fred and Waymire, Tammy Renea, From Confrontation to Congruence: The Potential Role of Payments in Lieu of Taxes in the Economic Development Conversation (Summer 2015). Public Budgeting & Finance, Vol. 35, Issue 2, pp. 19-39, 2015, Available at SSRN: https://ssrn.com/abstract=2623310 or http://dx.doi.org/10.1111/pbaf.12060

Fred Mayhew (Contact Author)

James Madison University - Department of Political Science ( email )

91 East Grace Street
MSC 7705,
Harrisonburg, VA 22807
United States

Tammy Renea Waymire

Northern Illinois University - Department of Accountancy ( email )

College of Business
DeKalb, IL 60115
United States
815.753.6471 (Phone)
815.753.8515 (Fax)

HOME PAGE: http://www.cob.niu.edu/personnel/PersonnelDetails.asp?id=a1561246

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