Frequently
Asked Questions
What are PILOTs?
Payments in lieu of taxes (PILOTs) are voluntary payments made by tax-exempt private nonprofits as a substitute for property taxes.
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Many of Duke's peer institutions - Yale, UPenn, Cornell, Princeton, Dartmouth, Brown, and others - already make significant payments to their respective local communities.
Why should Duke pay Durham PILOTs?
Duke is the largest private landowner in the city of Durham, owning over 10% of all the land in Durham estimated by the county assessor to be worth nearly $900 million, a number sure to balloon with next year's reevaluations. Because Duke does not pay property taxes, the university is in a position to benefit handsomely from the services and opportunities provided by the city that surrounds it without contributing its fair share. Duke is a rich university subsidized by the City of Durham, despite having an annual budget ten times the size of Durham's.
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Duke University and Duke University Health System can ensure that more people in our city have the opportunity to share collectively in the growing prosperity.
Doesn't Duke contribute to Durham in other ways?
It is true that Duke has its own community programs, and the university should continue these programs as a good partner to the city. However, residents and small businesses across Durham contribute their time, resources, and energy to the community AND pay their fair share in taxes. We function together because we pool our resources and make collective democratic decisions through our local government.
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The city of Durham needs functioning public services that serve all people and are governed by democratic procedures. Duke in turn needs a city with robust democratic governance and the capacity to carry out government responsibilities.
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There is no need for Duke to choose between its existing community programs and making payments in lieu of taxes. Universities with smaller endowments than Duke's nearly $12 billion endowment have already proven that it is possible to do both.