Fed’s reduce Oregon’s compensation for federal land

Local Governments will Receive $358 Million To Compensate for Tax-Exempt Federal Lands (PILT)

Department of Interior

Washington, D.C.—At the end of last week, Secretary of the Interior Ken Salazar announced that more than 1,850 local governments around the nation will be receiving their Payments in Lieu of Taxes (PILT).  Even though late, local governments should have received their payments by June 29. The payments would total $358.1 million to compensate them for non-taxable federal land in their jurisdictions. The funds would help them budget for essential services, such as firefighting and emergency response, and allows for additional improvements to school, road and water systems.

Unfortunately, Oregon will see its total 2010 payment lower than in 2009. Individual county payments also may vary from the prior year as a result of changes in acreage and population data.

Using a formula provided in statute, the annual PILT payments to local governments are computed based on the number of acres of federal entitlement land within each county or jurisdiction and the population within that county or jurisdiction.  The lands include the National Forest and National Park Systems, those managed by the Bureau of Land Management, those affected by Corps of Engineers and Bureau of Reclamation water resource development projects, and others.

For purposes of calculating the 2010 payment, the per acre amounts are adjusted for inflation from the 2009 payment. The computation also adjusts the payment for the level of prior-year revenue payments and the amount that a county receives under Sections 6904 and 6905 of the PILT Act.

As a result of increases in Forest Service timber and Mineral Leasing Act payments, reductions in PILT entitlement land, expiration of section 6904/5 payments and payments falling below the $100 threshold, the total 2010 PILT payments to Oregon, along with the following twenty-seven states were lowered. The other states include Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Idaho, Indiana, Kentucky, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Puerto Rico, Tennessee, Virgin Islands, Virginia, Wisconsin and Wyoming.

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