ISSUE BRIEF: Fully Fund the Federal Payment-in-Lieu-of-Taxes (PILT) Program
The Federal Government needs to fulfill its obligations to Western and rural communities
The Issue:
For Westerners, the federal government’s ownership of vast quantities of land does more than restrict economic development opportunities. It also robs local communities of property tax revenues and the taxes associated with private business development. The Federal Payments-In-Lieu-of-Taxes (PILT) program was created in 1976 to help offset a portion of this lost income for affected counties.
However, PILT the program is subject to the whims of the Congressional appropriations process and has never been fully funded. It is estimated that Western communities have lost out on over one billion dollars in unfunded PILT payments since the program was enacted.
In the 109th Congress, legislation was introduced by a bipartisan group of House members seeking to provide certainty and stability to Western communities heavily impacted by the presence of federal lands by permanently funding the Bureau of Land Management’s PILT program and the U.S. Fish and Wildlife’ Service’s refuge revenue sharing program.
Impacts on the West:
Western states’ tax bases suffer due to the presence of substantial swaths of federal land. Congress established the PILT program to help mitigate those impacts. PILT allows local communities to meet obligations and expectations of visitors to federal lands. It is how roads are maintained, garbage collected and people are kept safe in our national parks, forests, monuments and public lands. Local communities are heavily burdened, if the federal government does not fund PILT up to its authorized levels. Unfortunately, in these times of constrained budgets, that happens as a routine matter.
Status of the Issue:
To fully fund PILT for FY 2008 would require roughly $350 million. President Bush’s 2008 Budget request for PILT was just $190 million - representing a $42 million cut over last year’s enacted amount. Rep. Mark Udall (CO) and Rep. John Salazar (CO) introduced legislation, H.R. 790, earlier this year that would fully fund the PILT program. Rep. Barbara Cubin (WY) also introduced a bill that would phase in full-funding for PILT, H.R. 1620, on March 21.
In late March, the Senate attached an amendment to the FY 2007 emergency appropriations bill (H.R. 1591) that would fully fund the PILT program for the next five years at roughly $360 million per year. The measure now goes to a conference committee to settle differences between the Senate bill and a House-passed version. Due to other amendments to the Senate bill, there is some question as to whether the President will sign off on the amended H.R. 1591.
Solutions:
- Congress needs to pass legislation to assure a permanent PILT funding stream. Urge your Member of Congress to cosponsor and support H.R. 790, H.R. 1620, and similar legislation that would guarantee a fully funded PILT program.
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