[4][7][8] PILTs are made on a volunteer basis, leading situations where local governments receive smaller payments than requested based on property tax assessments.
However, all local governments must provide municipal services such as sewer and water, roads and transit, schools, police, fire departments to these properties.
The tax-exempt status granted to these entities by the IRS allows these organizations to largely avoid paying for the public services they benefit from.
A map in this report also reveals that although these 18 states can be found scattered across the country, the vast majority of this activity seems to be concentrated in the northeast.
It is argued that asking some, or all, nonprofits to pay taxes, either voluntarily, or via statutory measures, would help offset some of these costs and ease the strain on local budgets.