PILT (Payments in Lieu of Taxes): Somewhat Simplified [December 28, 2015]   [open pdf - 846KB]

From the report summary: "For FY2015, Congress approved $372 million in discretionary funding for PILT [Payments in Lieu of Taxes] in the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235) and $33 million in mandatory spending in the Carl Levin and Howard P. 'Buck' McKeon National Defense Authorization Act for Fiscal Year 2015 (P.L. 113-291). The latter measure also included another $37 million in mandatory spending to be made available on October 1, 2015--the start of FY2016; this figure was subject to sequestration of 6.8%, reducing the amount to $34.5 million. The resulting total of $439.5 million provided 97.3% of the $451.5 million that would be required for full funding. Over the next few years, the broader debate for Congress might be summarized as four decisions. Congress may decide whether to (1) approve PILT funding through future extensions of mandatory spending (either temporary or permanent); (2) fund PILT through annual appropriations bills; (3) provide full funding or reduce the payments, perhaps through the annual appropriations process or by changing the PILT formula; and (4) add or subtract any lands to the list of those now eligible for PILT payments. Since the creation of PILT in 1976, various other changes in the law have been proposed. One proposal has been to include additional lands under the PILT program, particularly Indian lands. Other lands also have been mentioned for inclusion, such as those of the National Aeronautics and Space Administration and the Departments of Defense and Homeland Security. Some counties would like to revisit the compensation formula to emphasize a payment rate more similar to property tax rates. Finally, some have argued that all lands in the NWRS [National Wildlife Refuge System] should be eligible for PILT, rather than limiting PILT payments to lands reserved from the public domain while excluding acquired lands from PILT payments."

Report Number:
CRS Report for Congress, RL31392
Public Domain
Retrieved From:
The National Agricultural Law Center: http://nationalaglawcenter.org/
Media Type:
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