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Payment In Lieu of Taxes (PILOT)

The purpose of the County Payment in Lieu of Taxes (PILOT) exemption is to support affordable housing, which is one of the County's missions. Local governments, when authorized by State Law, negotiate agreements with rental property owners to lower the cost of County real property and special area taxes. In return, a rental property owner commits to provide affordable housing to low-income residents. Following the legal, budgetary, and procedural review of a negotiated PILOT agreement, the County Department of Housing and Community Affairs (DHCA) recommends a PILOT to the Director of Finance for approval. The Department of Finance computes the fiscal impact and, subject to the guidelines and an annual funding limit, either approves or denies the recommended PILOT. This exemption is applied to the real property tax bills once the agreement is executed. The County Council sets the maximum annual funding amount for PILOT programs for a 10-year period only for properties that are not owned or controlled by the Housing Opportunity Commission (HOC).

For further information, please contact Roderick Simpson at 240.777.3690 or contact him by email at: roderick.simpson@montgomerycountymd.gov.

To speak with a Customer Service Representative, please call 311 during business hours.