Payments in lieu of taxes : fiscal year 2002 : national summary

284 Pages·2002·17.7 MB·English

;/
88066652 i \v <3 /
Alireri or
pepsin-
^uteau of 1 lagemejlf
Payment in Lieu of Taxes
Fiscal Year 2002
HJ
2339 National Summary
. P396
2002
c. 2
!!>SiOtC6SX tHT
%*1
X
•w
MOL
^,1
PAYMENTS IN LIEU OF TAXES
INTRODUCTION
“Payments in Lieu of Taxes (PILT)” are Federal payments to local government which have certain
Federal lands within their boundaries. The program is administered by the Department of the Interior
through the Bureau of Land Management (BLM). BLM’s responsibility is to calculate the payments
according to the formulas established by law and to distribute the funds appropriated by Congress.
Since the first payments in 1977, payments have averaged a total of about $104 million annually and
are used to help local governments provide important community services such as fire and police
protection, hospital and public school facilities, road construction and search/rescue operations. To
date (including the 2002 payments), over $2.9 billion in payments have been made to local
governments.
Additional information concerning PILT is available on the BLM web site located at
http://www.blm.gov/pilt or by calling BLM at [phone].
CHAPTER 69, 31 UNITED STATES CODE
PAYMENTS IN LIEU OF TAXES ACT
31 U.S.C. 6901-6907
This paper briefly discusses the Payments in Lieu of Taxes (PILT) Act of 1976, as amended. It
describes eligibility for "in-lieu" payments, gives examples of how the payments are computed, and
summarizes "entitlement" acres.
The Act authorizes the Secretary of the Interior to make two types of annual payments to eligible units
of local government. The Secretary has delegated the responsibility for administering the Act to the
Bureau of Land Management.
In October of 1976, Congress passed Public Law 94-565, commonly referred to as the "Payments in
Lieu of Taxes Act". This Act provides for payments to local units of government containing certain
federally-owned lands. These payments are designed to supplement other Federal land receipt sharing
payments local governments may be receiving. Payments received under the Act may be used by the
recipients for any governmental purpose. The Act was amended in September, 1982 and renotified at
Chapter 69, 31 U.S.C.
On July 30, 1983, the PILT Act (31 U.S.C.) was amended by P.L. 98-63 which refined the definition
of "unit of general local government" and added a new section (31 U.S.C 6907) that authorized State
governments to enact legislation to reallocate PILT payments in whole or in part to other smaller units
of general purpose government. The amendment further provides that where States Enact such
legislation, the PILT funds would be paid to State governments for redistribution to the appropriate unit
of general local government. The State of Wisconsin is presently the only State to enact legislation
(Wisconsin Act 470) under section 6907.
On October 22, 1994, the PILT Act (31 U.S.C.) was amended by P.L. 103-397 which called for
increases to the $.75/$. 10 variables used to compute section 6902 payments and to the population
table used to determine each unit of local governments population ceiling. The increases were effective
with the September 1995 PILT payment and will continue to be made on an annual basis thereafter.
I. Section 6902 "Entitlement Land" Payments
Section 6902 authorizes payments to local units of government (generally counties, or the equivalent)
under one of two alternatives, based on the number of acres of "entitlement lands" within the county.
"Entitlement lands" consist of lands in the National Forest System and the National Park System, lands
administered by the Bureau of Land Management, and lands dedicated to the use of Federal water
resource development projects. Also included are dredge disposal areas under the jurisdiction of the
Army Corps of Engineers, National Wildlife Reserve Areas withdrawn from the public domain, inactive
and semi-active Army installations used for non-industrial purposes, and certain lands donated to the
United States Government by State and local governments. The Act specifically prohibits payments for
tax exempt lands (but not donated lands) acquired from State or local governments.
The 75 cents for each acre of entitlement land provision is amended to 93 cents during fiscal year 1995,
$1.11 during fiscal year 1996, $1.29 during fiscal year 1997, $1.47 during fiscal year 1998, and $1.65
during fiscal year 1999.
2
The 10 cents for each acre of entitlement land provision is amended to 12 cents during fiscal year 1995,
15 cents during fiscal year 1996, 17 cents during fiscal year 1997, 20 cents during fiscal year 1998, and
22 cents during fiscal year 1999.
The increase in population cap dollar amount during fiscal year 1994 will change from $50 if population
is less than or equal to 5,000 to $62, $74 during fiscal year 1996, $86 during fiscal year 1997, $98
during fiscal year 1998 and $110 during fiscal year 1999.
Beginning in Fiscal Year 1996 all of the variables mentioned above and the population cap dollar
amounts mentioned below will be adjusted for inflation on an annual basis. The yearly inflation
percentage is obtained from the Consumer Price Index (CPI).
Fiscal Year 2002 Entitlement Land Payment Formula
The amount be paid to each unit of general local government is the higher of:
A. One dollar ninety-nine cents for each acre of "entitlement land" within the boundaries of the unit
of government, reduced by the amount of certain Federal land payments (See Table 1) that were
received by the unit in the preceding fiscal year (Deductible amounts are reported to BLM each year by
the Governor of each State or his delegate.) 1/
-OR-
B. Twenty-seven cents for each acre of "entitlement land" within the unit of government. Here, no
deductions are made for the Federal land payments received by the unit of government in the preceding
fiscal year.
Entitlement land payments to each unit of general local government are subject to population payment
limitations or ceilings. Payment ceilings are based on a sliding scale, starting at $132.79 per capita (for
populations of 5,000 and under) and rising to a maximum payment of $2,655,500 (Table 2). Under
Alternative A, if the total calculated payment ($1.99 x entitlement acres) exceeds the ceiling, deductions
for other Federal land payments received are made from the ceiling, not from the $1.99 per acre figure.
The following examples show how the section 6902 payment is computed.
Example 1 - Payment Alternative A Greater than B:
Population limitation (19,000 x $74.84) 1/ $1,421,960
A. 88,442 acres x 1.99 cents per acre 1/ 176,000
Deduction for prior year payments -36,435
Payment to county - Alternative A $139,565
B. 88,442 acres x 27 cents per acre 1/ $23,879
No deduction under this alternative - 0
Payment to county - Alternative B $23,879
3
In this case, the county would receive $139,565. If the population limitation were $90,000, the
Alternative A payment would be $53,565 ($90,000 - $36,435).
1/ The $1.99 and 27 cent per acre values and the $74.84 population multiplier result from multiplying
the FY 2001 per acre values of $1.92 and 26 cents and the population multiplier of $72.36 by the FY
2001 CPI inflation factor of 1.0343%. Also, only the amount of Federal land payments actually
received by units of government in the prior fiscal year are deducted. If a unit receives a Federal land
payment, but is required by State law to pass all or part of it to financially and politically independent
school districts, or other single or special purpose district, such redistributed payments are considered
to have not been received by the unit of local government and are not deducted from the section 6902
payment*. **********************
Example 2 - Payment Alternative B greater than A:
Population limitation (12,000 x $88.12) $1.057,440
A. 81,391 acres x $1.99 cents per acre 161,968
Deduction for prior year payments -183.000
Payment to county - Alternative A $_0
B. 81,391 acres x 27 cents per acre $21,976
No deduction under this alternative -_0
Payment to county - Alternative B $21,976
In this case, $21,976 would be the payment to the county.
Example 3 - ceiling in effect - payment limited to population ceiling:
Population limitation (3,000 x $132.79) $398,370
A. 1,700,000 acres x 1.99 cents per acre $3,383,000
Population ceiling limit 398,370
Deduction for prior year payments -750,000
Payment to county - Alternative A $_0
B. 1,700,000 acres x 27 cents per acre $459,000
No deduction under this alternative 0
Payment to county - Alternative B $459,000
Payment to county - allowed by ceiling $398,370
4
In the case of this county with high Federal land ownership and a small population, the ceiling is applied
to both alternatives with that ceiling amount being paid to the county under Alternative B.
II. Section 6904 Payments
Section 6904 of the Act authorizes payments for any lands or interest therein which were acquired after
December 31, 1970, as additions to the National Park System or National Forest Wilderness Areas.
These lands must have been subject to local real property taxes within the five year period preceding
the acquisition by the Federal government. Payments under this section are made in addition to
payments under section 1. They are based on 1 % of the fair market value of the lands at the time of
acquisition, but may not exceed the amount of real property taxes assessed and levied on the property
during the last full fiscal year before the fiscal year in which acquired. Section 6904 payments for each
acquisition are to be made annually for five years following each acquisition.
Federal payments of $100 or more made under section 6904 must be distributed by the recipient unit
of local government to those units of local government and affected school districts which have incurred
losses of real property taxes due to the acquisition of these lands or interests therein. Distribution shall
be in proportion to the tax revenues assessed and levied by the affected units of local governments and
school districts in the year prior to the acquisition of these lands by the Federal government.
III. Section 6905 Payments
Section 6905 of the Act authorizes payments for any lands or interest in land owned by the
Government in the Redwood National Park or acquired in the Lake Tahoe Basin under the Act
December 23, 1980 (P.L. 96-586, 94 Stat. 3383). Section 6905 payments will continue beyond the
five year limitation. These payments will continue until the total amount paid equals 5% of the fair
market value of the lands at the time of acquisition. However, the payment for each year cannot
exceed the actual property taxes assessed and levied on the property during the last full fiscal year
before the fiscal year in which the property was acquired by the Federal government.
CHAPTER 69,31 U S. CODE Table 1
PAYMENTS IN LIEU OF TAXES
FEDERAL LAND PAYMENTS (SECTION 6903(a)(1))
Provision of Law Aeencv Making Pavment Tvoes of Receipts Disposition of Receipts
(1) Act of 5/23/08; Dept, of U.S. Forest Service Monies received from each 65% to U.S. Treasury
Agriculture Approp. Act; National Forest 25% of gross to State for counties
35 Stat. 251; 16U.S.C. 500 10% to Forest Roads Approp.
(2) Act of 6/20/10 (Sec 35); U.S. Forest Service Proceeds from all Nat’l 100% to States for Schools
Act of Arizona and New Forest as area of land for
Mexico; 36 Stat. 557 schools bears to area of all
Nat’l Forest in State
(3) Act of 2/25/20 (Sec 35); Bu. of Land Management Monies received from 50% to States
Mineral Lands Leasing Act; Mineral Leasing 40% to Bur. of Reclamation
41 Stat. 450; 30U.S.C. 191 10% to U.S. Treasury
(4) Federal Power Act Federal Energy Regula¬ Occupancy and use of Nat. 50% to Bur. of Reclamation
(Section 17); 41 Stat. 1072; tory Commission Forest and Public Lands 37.5% to States
16U.S.C. 810 12.5% U.S. Treasury
(5) Taylor Grazing Act Bu. of Land Management Proceeds from section 3 50% to Range Improvement Fund
(Sec 10); 43 U.S.C.315i grazing receipts 37.5% to U.S. Treasury
12.5% to States for counties
Proceeds from section 15 50% to States for counties
grazing receipts 50% to Range Improvement Fund
(6) Bankhead-Jones Farm Bu. of Land Management Revenues from use of the 50% to Range Improvement Fund
Tenant Act (Section 33); 50 lands 25% to counties
Stat. 526; 7 U.S.C. 1012 25% to U.S. Treasury
(7) Act of 6/22/48; Superior U.S. Forest Service Percentage of fair appraised 75% of appraised value paid
Nat’l Forest State of Minn.; value in addition to Act of 5/23/08
62 Stat. 570; 16 U.S.C. 577g ((1) above)
(8) Act of 6/22/56; Superior U.S. Forest Service Same as (7) above Same as (7) above
Act of 6/22/48; 70 Stat. 328;
16 U.S.C. 577g-l
(9) Mineral Leasing Act for Bu. of Land Management Monies received from 50% to States
Acquired Lands (Sec. 6); U.S. Forest Service mineral leasing 40% to Bureau of Reclamation
61 Stat. 915; 30 U.S.C. 355 10% to U.S. Treasury
(10) Material Disposal Act Bu. of Land Management Net revenues from sale of varies depending upon type of
(Section 3); 61 Stat. 681 U.S. Forest Service land and materials receipt and agency
(11) Refuge Revenue Shar¬ U.S. Fish and Wildlife Revenues from sale of tmbr, 25% of net receipts to counties
ing Act, as amended; 92 Stat grazing and minerals on re¬ 75% to Revenue Sharing Fund
1321; 16 U.S.C. 715s(c)(2) serve area lands and sale of
carcasses of certain animals
Fiscal Year 2002 Population Values for Table 2
Payments in Lieu of Taxes (Section 6902)
Payment shall not exceed the
If population is amount computed by multiplying
less than or equal to: such population by:
5,000-$132.79
6,000- 124.34
7,000- 117.09
8,000- 108.64
9,000- 101.40
10,000- 92.94
11,000- 90.54
12,000- 88T2
13,000- 84.49
14,000- 82.09
15,000- 79.67
16,000- 78.47
17,000- 77.26
18,000- 76.06
19,000- 74.84
20,000- 73.64
21,000- 72.43
22,000- 71.22
23,000- 71.22
24,000- 70.02
25,000- 68.81
26,000- 67.61
27,000- 67.61
28,000- 67.61
29,000- 66.39
30,000- 66.39
31,000- 65.18
32,000- 65.18
33,000- 63.98
34,000- 63.98
35,000- 62.77
36,000- 62.77
37,000- 61.57
38,000- 61.57
39,000- 60.36
40,000- 60.36
41,000- 59.16
42,000- 57.94
43,000- 57.94
44,000- 56.73
45,000- 56.73
46,000- 55.53
47,000- 55.53
48,000- 54.33
49,000- 54.33
PCN: PI013 U.S. DEPARTMENT OF THE INTERIOR - BUREAU OF LAND MANAGEMENT Page Number:
Date: 06/03/2002 PAYMENTS IN LIEU OF TAXES - FOR FISCAL YEAR 2002
SUMMARY BY STATE
PREV. PMT
ENTITLEMENT REV. SHAR. 6902 6904/05 NET ADJ.MADE TOTAL PD
STATE ACRES PAYMENTS PAYMENTS PAYMENTS > $100 CHECK THIS FY THIS FY
ALABAMA 794,833 $334,371 $1,247,352 $0 $1,247,054 $744,420 $0 $744,420
ALASKA 237,718,650 $2,122,713 $23,399,031 $0 $23,399,031 $13,969,645 $0 $13,969,645
ARIZONA 27,582,635 $917,774 $28,258,732 $95,610 $28,354,342 $16,928,055 $0 $16,928,055
ARKANSAS 3,282,728 $1,830,029 $4,702,604 $717 $4,702,985 $2,807,672 $0 $2,807,672
CALIFORNIA 43,474,220 $18,163,445 $36,630,450 $1,639,255 $38,269,677 $22,847,692 $0 $22,847,692
COLORADO 23,643,480 $10,533,300 $24,328,663 $9,041 $24,337,704 $14,530,051 $0 $14,530,051
CONNECTICUT 12,019 $0 $23,920 $18,435 $42,222 $25,204 $0 $25,204
DELAWARE 2,060 $0 $4,099 $0 $4,099 $2,348 $0 $2,348
DISTRICT OF COLUMBIA 6,963 $0 $13,856 $11,169 $25,025 $14,940 $0 $14,940
FLORIDA 2,530,785 $475,288 $4,560,973 $319,140 $4,879,793 $2,913,111 $0 $2,913,111
GEORGIA 1,290,171 $26,422 $2,541,020 $191,719 $2,732,583 $1,631,404 $0 $1,631,404
GUAM 1,165 $0 $2,318 $1,352 $3,670 $2,191 $0 $2,191
HAWAII 14,968 $0 $29,787 $9,807 $39,594 $23,639 $0 $23,639
IDAHO 32,463,335 $4,547,445 $23,304,716 $4,015 $23,308,731 $13,915,735 $0 $13,915,735
ILLINOIS 478,215 $83,784 $919,022 $0 $918,890 $548,595 $0 $548,595
INDIANA 309,769 $4,998 $611,443 $33,414 $644,819 $384,828 $0 $384,828
IOWA 181,783 $0 $361,749 $0 $361,669 $215,922 $0 $215,922
KANSAS 544,679 $500,377 $904,730 $0 $904,670 $540,102 $0 $540,102
KENTUCKY 1,245,261 $84,455 $2,424,396 $383 $2,424,025 $1,447,043 $0 $1,447,043
LOUISIANA 745,223 $1,160,329 $444,223 $2,250 $445,959 $266,172 $0 $266,172
MAINE 116,875 $20,160 $212,420 $65,624 $277,937 $168,964 $0 $168,964
MARYLAND 43,549 $3,238 $83,424 $52,983 $136,351 $81,405 $0 $81,405
MASSACHUSETTS 40,073 $0 $79,750 $23,399 $102,699 $60,880 $0 $60,880
MICHIGAN 2,151,540 $1,001,573 $3,292,668 $9,366 $3,301,866 $1,971,271 $0 $1,971,271
MINNESOTA 2,898,914 $3,086,758 $2,178,159 $6,568 $2,184,159 $1,303,982 $0 $1,303,982
MISSISSIPPI 1,621,296 $3,579,072 $1,569,900 $1,570,265 $937,308 $0 $937,308
MISSOURI 2,043,848 $511,409 $3,555,850 $0 $3,555,728 $2,122,737 $0 $2,122,737
MONTANA 27,095,167 $5,335,504 $27,240,954 $414 $27,241,368 $16,163,888 $0 $16,163,888
NEBRASKA 526,505 $22,466 $962,645 $0 $962,503 $574,537 $0 $574,537
NEVADA 56,790,494 $147,708 $19,235,883 $37,231 $19,273,114 $11,506,400 $0 $11,506,400
NEW HAMPSHIRE 753,613 $0 $1,409,774 $3,097 $1,412,869 $843,312 $0 $843,312
NEW JERSEY 40,073 $0 $79,746 $17,888 $97,402 $58,150 $0 $58,150
NEW MEXICO 22,591,875 $748,692 $31,826,312 $19,327 $31,845,639 $19,012,423 $0 $19,012,423
NEW YORK 59,189 $8,479 $109,308 $20,386 $129,528 $77,247 $0 $77,247
NORTH CAROLINA 1,711,648 $0 $3,406,178 $18,241 $3,424,389 $2,044,276 $0 $2,044,276
NORTH DAKOTA 1,720,521 $3,727,120 $1,590,263 $6 $1,590,039 $949,282 $0 $949,282
OHIO 352,235 $22,267 $679,915 $126,016 $805,756 $480,781 $0 $480,781
OKLAHOMA 1,481,492 $944,418 $2,241,489 $1,000 $2,242,140 $1,338,431 $0 $1,338,431
OREGON 28,705,781 $57,437,145 $12,721,834 $3,669 $12,725,503 $7,597,285 $0 $7,597,285
PCN: PI0I3 U.S. DEPARTMENT OF THE INTERIOR - BUREAU OF LAND MANAGEMENT Page Number: 2
Date: 06/03/2002 PAYMENTS IN LIEU OF TAXES - FOR FISCAL YEAR 2002
SUMMARY BY STATE
PREV. PMT
ENTITLEMENT REV. SHAR. 6902 6904/05 GROSS PMT NET ADJ.MADE TOTAL PD
STATE ACRES PAYMENTS PAYMENTS PAYMENTS > $100 CHECK THIS FY THIS FY
PENNSYLVANIA 652,039 $752,426 $549,553 $88,948 $638,341 $381,030 $0 $381,030
PUERTO RICO 29,727 $20,919 $38,238 $0 $38,238 $22,829 $0 $22,829
RHODE ISLAND 4 $0 $8 $0 $0 $0 $0 $0
SOUTH CAROLINA 773,816 $576,821 $963,074 $12,736 $975,790 $582,565 $0 $582,565
SOUTH DAKOTA 2,877,145 $1,535,096 $4,163,311 $0 $4,162,993 $2,485,195 $0 $2,485,195
TENNESSEE 1,254,171 $373,512 $2,122,292 $24,359 $2,146,583 $1,281,451 $0 $1,281,451
TEXAS 2,693,844 $602,142 $4,522,420 $11,460 $4,533,712 $2,706,453 $0 $2,706,453
UTAH 32,823,031 $950,173 $26,985,022 $484 $26,985,506 $16,110,837 $0 $16,110,837
VERMONT 397,241 $31,455 $715,488 $6,189 $721,579 $430,799 $0 $430,799
VIRGIN ISLANDS 14,028 $0 $27,916 $29,135 $57,051 $34,060 $0 $34,060
VIRGINIA 2,047,115 $549,617 $3,524,144 $73,042 $3,597,009 $2,147,341 $0 $2,147,341
WASHINGTON 11,606,136 $12,349,133 $11,952,981 $153,073 $12,106,052 $7,227,532 $0 $7,227,532
WEST VIRGINIA 1,223,514 $57,044 $2,377,751 $17,999 $2,395,482 $1,430,048 $0 $1,430,048
WISCONSIN 1,349,972 $1,788,315 $944,756 $1,687 $945,619 $564,377 $0 $564,377
WYOMING 29,889,764 $2,067,919 $21,621,229 $814 $21,622,043 $12,908,750 $0 $12,908,750
GRAND TOTAL: 614,699,177 $139,035,311 $347,697,739 $3,162,136 $350,851,795 $209,364,595 $0 $209,364,595