Baltimore City has finalized new nonprofit assessment agreements with 14 major hospitals and universities, which will double annual payments to the City by the end of the term.
Mayor Brandon Scott announced that beginning in FY 2027, Baltimore’s anchor institutions will phase in higher annual payments in lieu of taxes (PILOT) — voluntary contributions made by tax-exempt nonprofits in recognition of the City services they rely on. Annual payments will grow from $6 million in 2027 to $12 million in 2030, with the agreement running through FY 2031, when it will be subject to renegotiation.
The participating institutions include Johns Hopkins University and Hospital, the University of Maryland Medical Center’s Downtown and Midtown campuses, MedStar hospitals, Sinai Hospital, Grace Medical Center, Loyola University Maryland, the Maryland Institute College of Art, and Notre Dame of Maryland University.
Over the last 16 years, earlier PILOT agreements yielded annual contributions between $1.4 million and $6 million. The new deal, which accounts for fiscal pressures on smaller institutions amid federal funding cuts, represents the most significant expansion of Baltimore’s nonprofit assessment program to date.
Approximately 32% of all property in Baltimore City is tax-exempt, including hospitals, universities, government buildings, and other nonprofit organizations. Baltimore relies heavily on PILOT agreements because a large share of its land base is exempt from the regular property tax rolls, placing greater pressure on the taxable portion of the City’s economy to fund services.
In addition to the new PILOT contributions, the 14 institutions already provide $29 million in local taxes and fees each year, as well as investments in community safety, waste management, and right-of-way maintenance. Collectively, they employ more than 71,000 people — about one in four private-sector jobs in the City — and generate nearly $58 million annually in local income taxes.
Altogether, if economic conditions remain steady, the institutions will deliver about $481 million to Baltimore’s General Fund over five years through PILOT payments, taxes, and fees.
Nonprofit PILOT agreements continue to be a recurring fiscal challenge for Maryland’s local governments. Counties must fund core services while hosting tax-exempt hospitals, universities, and other major nonprofits that drive their economies. Baltimore’s new agreement reflects an effort to capture more revenue while recognizing the broader role these institutions play in community and workforce development.
