Key terms

MOU — A Memorandum of Understanding is an agreement between two parties that is clearly outlined in a formal document that can be legally binding depending on the language. 

PILOT — A payment in lieu of taxes that tax-exempt organizations might provide to contribute to a city, state or federal government budget.

Tax-exempt status — Charitable organizations, churches and religious organizations, private foundations, political organizations and other nonprofits are all tax-exempt entities meaning they are not required to pay taxes at a local, state or federal level.

Tax-exempt property — Only property that is core to a tax-exempt entity’s operations would be free from paying taxes on property it owns.