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1 [1] (March 17, 2025)

handle is hein.crs/pmsiliu0001 and id is 1 raw text is: Congressional Research Service /Mase Inforrning the legislative debate since 1914 Updated March 17, 2025 Payments in Lieu of Taxes (PILT): Section 6902 Payments Introduction Several federal programs compensate local jurisdictions for the presence of nontaxable federal lands. The widest- ranging program is the Department of the Interior's (DOI's) Payments in Lieu of Taxes (PILT) program. PILT compensates units of general local government for selected lands administered by several federal agencies. Units of general local government typically are referred to as counties. P.L. 118-42 provided $621.6 million in funding for PILT for FY2024, with $621.2 million paid to more than 1,900 counties in 49 states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. The remaining $0.4 million was for program administration. PILT funding is allocated under three payment mechanisms-Section 6902, Section 6904, and Section 6905-corresponding with the sections of law (31 U.S.C. §§6902, 6904, 6905). Section 6902 payments account for nearly all of the funding disbursed under PILT. Section 6904 and 6905 payments are provided under selected circumstances, generally account for less than 1% of PILT payments, and are made to a minority of counties (most of which also receive Section 6902 payments). This product discusses Section 6902 payments. Issues for Congress center on the types of lands that should be covered by PILT and the amount and type of funding. Payment Formula Section 6902 payments are made to counties pursuant to a formula provided in statute (Figure 1). Several factors are used to calculate the authorized PILT payment amount for a county: entitlement land and per acre payment rates, population-based payment ceilings, prior-year non-PILT payments, and inflation. These factors are described below. Additionally, the level of funding available each year for PILT payments determines whether counties receive the fully authorized payment amount. Entitlement Land and Per Acre Payment Rates: Lands eligible under PILT are referred to as entitlement lands in statute (31 U.S.C. §6901) and include federal lands * in the National Park System; * in the National Forest System; * administered by the Bureau of Land Management; * in the National Wildlife Refuge System withdrawn from the public domain; * dedicated to the use of federal water resources development projects; * used for certain dredge disposal areas; * located near Purgatory River Canyon and Pinlon Canyon, CO, and acquired after December 31, 1981, to expand the Fort Carson military reservation; * on which are located semi-active or inactive Army installations used for certain purposes; and * acquired per the Southern Nevada Public Land Management Act (P.L. 105-263). The first step in calculating authorized payments is determining the number of entitlement acres within a county, which is the responsibility of the various federal agencies that administer the lands (Figure 1, Step A). Taking into account a population-based payment ceiling as described below (Figure 1, Step B), a county's authorized payment is calculated by multiplying the number of entitlement acres by one of two per acre payment rates-a higher rate offset by prior-year non-PILTpayments (Alternative A) or a non-offset lower rate (Alternative B) (Figure 1, Step C). The higher amount is the authorized payment. Figure 1. PILT Section 6902 Payment Formula, with FY2024 Rates Source: CRS, with data from 31 U.S.C. §§6901 et seq. and DOI, Fiscal Year 2024 Payments in Lieu of Taxes National Summary. r)s://crsrepo rts.conQ ress~qo

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