Eligibility for payment is reserved for local governments that provide services such as those related to public safety, environment, housing, social services, and transportation. Payment is made directly to the eligible local government unless the State government chooses to enact legislation (under guidelines in section 6907 of Public Law 97-258) to receive the payments and, in turn, pass the money on to other smaller governmental units located within the counties (Wisconsin is the only State currently employing this option).
Section 6902 of P.L. 97-258 states that PILT payments may be used by recipients for any governmental purpose and are not required to be further distributed by recipients (usually counties) to other local government units such as school districts or cities.
Payments made under sections 6904 and 6905 of the Act must be must be redistributed proportionally by recipients to units and school districts that lost real property taxes as a result of the Federal acquisition. Recipients may then use the payment for any governmental purpose.
Does PILT have a Code of Federal Domestic Assistance (CFDA) number?
The CFDA number for the Payments in Lieu of Taxes program is 15.226.
Congress appropriated $442 million for the FY 2015 program. This includes $404.6 million for June 2015 payments, $34.5 million for October 2015 payments, $2.5 million required for sequestration, and $400,000 for program administration.
These funds were provided through two legislative vehicles:
- On December 16, 2014, the President signed the Consolidated and Further Continuing Appropriations Act, 2015 (Public Law 113-235) which appropriated $372 million in discretionary funding for PILT.
- On December 19, 2014, the President signed the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act (NDAA) for Fiscal Year 2015 (Public Law 113-291) which appropriated $70 million in mandatory funding. Of the $70 million, $33 million was available for June 2015 payments and $37 million became available for payments on October 1, 2015.
- Section 138 of the Continuing Appropriations Act of 2016 (Public Law 114-53) signed by the President on September 30, 2015 included clarifying language stating the $37 million provided under the 2015 NDAA shall be applied to the FY 2015 PILT program.
- Since the $37 million was included in the baseline for sequestration issued in the February 2, 2015, OMB Report to Congress on the Joint Committee Reductions for Fiscal Year 2016, these funds were subject to a 6.8% reduction for sequestration. After sequestration, $34.5 million is available for October payments.
PILT payments totaling $34,484,000 were issued to approximately 1,900 counties on October 30, 2015.
Previous updates on the Website indicated the $37 million available in October was part of the FY 2016 PILT program. What changed?
Section 138 of the Continuing Appropriations Act of 2016 (Public Law 114-53) signed by the President on September 30, 2015 included clarifying language stating the $37 million provided under the 2015 NDAA shall be applied to the 2015 PILT program.
Will all counties who received a payment in June also receive a payment from the October funds?
Yes, counties that received a payment in June will receive an additional payment in October. In addition, 18 counties that did not receive a payment in June due to the administrative provisions for the PILT program limiting the ability to issue payments under $100 will receive their full 2015 disbursement in October.
According to the formula established by the PILT law, there are three categories of entitlement lands: :
- Federal lands in the National Forest System and the National Park System, lands administered by the Bureau of Land Management, lands in Federal water resource projects, dredge areas maintained by the U.S. Corps of Engineers, inactive and semi-active Army installations, and some lands donated to the Federal Government (section 6902 payments).
- Federal lands acquired after December 30, 1970, as additions to lands in the National Park System or National Forest Wilderness Areas (section 6904 payments).
- Federal lands in the Redwood National Park or lands acquired in the Lake Tahoe Basin near Lake Tahoe under the Act of December 23, 1980, (Section 6904 or 6905 payments).
DOI computes payments authorized under section 6902 of the Act using the greater of the following two alternatives:
(A) $2.62 (in FY 2015) times the number of acres of qualified Federal land in the county (as defined above), reduced by the amount of funds received by the county in the prior fiscal year under certain other Federal land receipt sharing programs such as the twenty-five percent timber program or the mineral leasing program.
(B) Thirty-seven cents (in FY 2015) times the number of acres of qualified Federal land in the county, with no deduction for prior-year payments.
Both alternatives explained above are subject to a population ceiling limitation computed by multiplying the county population times a corresponding dollar value (adjusted annually for inflation) contained in the Act.
Section 6904 and 6905 payments are computed by taking one percent of the fair market value of land acquired for addition to the National Forest or National Park systems and comparing the result to the amount of property taxes paid on the land in the year prior to Federal acquisition. The county payment is the lesser of the two.
Section 6904 payments are made annually for a period of five years. The first payment begins in the Federal fiscal year following the fiscal year in which the land was acquired by the Federal Government, unless mandated otherwise by law.
Section 6905 payments are also made annually but continue until five percent of the fair market value is fully paid. The first payment begins in the Federal fiscal year following the fiscal year in which the land was acquired by the Federal Government, unless mandated otherwise by law. However, the yearly payment may not exceed the lesser of one percent of the fair market value or the property taxes that were assessed prior to Federal acquisition.
Funding limitations are equitably applied to all payments under the program. Any PILT payment or portion of a payment that is not made as a result of funding limitations is not carried forward to future years.
The law, as amended in 1994, uses the Consumer Price Index to adjust the population limitations and per acre dollar amounts used to calculate alternatives "A" and "B" under section 6902.
Prior-year payments are Federal payments to local governments under programs other than PILT during the previous fiscal year. These payments include those made under the Refuge Revenue Sharing Fund, the National Forest Fund, the Taylor Grazing Act, the Mineral Leasing Act for acquired lands, the Federal Power Act, and the Secure Rural Schools and Community Self-Determination Act of 2000. The PILT Act requires each State to report these payments to DOI each year.
Yes. Since the $37 million was included in the baseline for sequestration issued in the February 2, 2015, OMB Report to Congress on the Joint Committee Reductions for Fiscal Year 2016, these funds are subject to a 6.8% sequestration reduction, leaving $34,484,000 available for payments to local governments.
Were the June 2015 payments subject to sequester?
No, they were not.
Payments are made by wire transfer directly to county bank accounts or by check to a county’s address of record. If your county is already registered in System for Award Management (SAM) you will need to make any bank account changes or address changes directly in SAM. If your county is not registered in SAM you should register in SAM by going to https://www.sam.gov/portal/public/SAM. The SAM helpdesk number is (866) 606-8220. The information in SAM will interface to the financial system where your PILT payment is disbursed from. Additional information about SAM can be found on the PILT website at https://www.doi.gov/pilt/sam-bulletin.
A list of PILT "entitlement land" by State, county and Federal agency used for the calculation of the FY 2015 PILT Program is available by clicking on the following title: Fiscal Year 2015 PILT Entitlement Land.
Questions concerning a description (location, type, parcel size, etc.) of PILT entitlement land should be directed to the agency that owns or administers the land. The following is a list, by agency, of people to contact concerning PILT entitlement land.
|Bureau of Land Management|
|Alaska||Dave Mushovic||(907) 241-4682|
|Arizona||Rick Selbach||(602) 417-9314|
|California||Richard Bubb||(916) 978-4358|
|Colorado||John Beck||(303) 239-3882|
|Idaho||Charlotte Alexander||(208) 373-3895|
|Montana/ND/SD||Tammi Lorenz||(406) 896-5053|
|Nevada||Ronald Evenson||(775) 861-6411|
|NM/KS/OK/TX||Cynthia Sandoval||(505) 954-2198|
|Oregon/Washington||Jenny Liang||(503) 808-6299|
|Utah||Joy Wehking||(801) 539-4114|
|Wyoming/Nebraska||Marilyn Roth||(307) 775-6189|
|All other States||Charles Johnson||(202) 912-7737|
|Army/Corps of Engineers||Rhonda Johnson (AL)||(251) 694-3674|
|Fish and Wildlife Service||Ken Fowler (VA)||(703) 358-1876|
|Forest Service||Holly Martin (OR)||(503) 808-2431|
|National Park Service||Nadine Leisz (DC)||(202) 354-6961|
|Bureau of Reclamation||Ryan Alcorn (CO)||(303) 445-2711|
Discretionary funding for the PILT program is continued at the 2015 rate, under Section 101(a)(13) of the Continuing Appropriations Act of 2016 (H.R. 719). This provision allows the Department to initiate the 2016 data collection process. States and Agencies should expect to see correspondence from the Department in the coming weeks requesting updated acreage and prior year payment data as of September 30, 2015.
Additional information concerning the PILT program may be obtained by writing to DOI, Office of Budget, 1849 C Street NW (Mail Stop 7413, MIB), Washington, D.C. 20240; or calling (202) 513-7783.