The Payments in Lieu of Taxes (PILT) Program: An Overview

Changes from April 18, 2023 to July 10, 2023

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The Payments in Lieu of Taxes (PILT) Program: ~~April 18~~July 10, 2023 , 2023
An Overview
~~Katie Hoover~~Carol Hardy Vincent
The Department of the Interior’s (DOI’s) Payments in Lieu of Taxes (PILT; 31 U.S.C. The Department of the Interior’s (DOI’s) Payments in Lieu of Taxes (PILT; 31 U.S.C.
§§6901- Specialist in Natural Specialist in Natural
~~§§6901-~~6907) program provides compensation for certain tax-exempt federal lands, 6907) program provides compensation for certain tax-exempt federal lands,
known as entitlement Resources Policy Resources Policy
~~known as~~ ~~entitlement~~ lands. PILT payments are made annually to . PILT payments are made annually to units of general local

government—typically —typically counties—that contain entitlement lands. counties—that contain entitlement lands. ~~Although~~ PILT is only PILT is only
one of several federal programs that exist to compensate counties and other local one of several federal programs that exist to compensate counties and other local

jurisdictions for the presence of federal lands within their jurisdictions for the presence of federal lands within their ~~boundaries~~ boundaries. However, PILT applies to the broadest array of land , PILT applies to the broadest array of land
types. PILT entitlement lands types. PILT entitlement lands ~~include~~include most federal lands administered by the Bureau of Land Management, the National Park lands administered by the Bureau of Land Management, the National Park
Service, Service, and the U.S. Fish and Wildlife Service, all in DOIthe U.S. Fish and Wildlife Service, all in DOI~~; lands administered~~, and by the U.S. Forest Service in the by the U.S. Forest Service in the
Department of Agriculture; federal water projects; Department of Agriculture; federal water projects; ~~some military installations; and selected other lands. In~~
~~FY2022, DOI distributed $549.4~~dredge disposal areas; and some military installations. In FY2023, the PILT appropriation was $579.2 million, and DOI distributed $578.8 million in PILT payments to more than 1,900 counties across 49 states, the million in PILT payments to more than 1,900 counties across 49 states, the
District of Columbia, Guam, Puerto Rico, and the Virgin Islands. District of Columbia, Guam, Puerto Rico, and the Virgin Islands.
PILT comprises three separate payment mechanisms, named after the sections of law in which they are PILT comprises three separate payment mechanisms, named after the sections of law in which they are
authorized: Section 6902 (31 U.S.C. §6902), Section 6904 (31 U.S.C. §6904), and Section 6905 (31 U.S.C. authorized: Section 6902 (31 U.S.C. §6902), Section 6904 (31 U.S.C. §6904), and Section 6905 (31 U.S.C.
§6905). Section 6902 payments are the broadest of the three payment mechanisms; they account for nearly all of §6905). Section 6902 payments are the broadest of the three payment mechanisms; they account for nearly all of
the funding disbursed under the PILT program and are made to most of the counties receiving PILT funding. In the funding disbursed under the PILT program and are made to most of the counties receiving PILT funding. In
contrast, Section 6904 and Section 6905 payments are provided only under selected circumstances, account for a contrast, Section 6904 and Section 6905 payments are provided only under selected circumstances, account for a
small fraction of PILT payments, and are made to a minority of counties (most of which also receive Section 6902 small fraction of PILT payments, and are made to a minority of counties (most of which also receive Section 6902
payments). In addition, whereas Section 6902 payments are provided each year based on the presence of payments). In addition, whereas Section 6902 payments are provided each year based on the presence of
entitlement lands, most payments under Section 6904 and Section 6905 are provided only for a entitlement lands, most payments under Section 6904 and Section 6905 are provided only for a ~~short~~limited duration duration
after certain land acquisitions. after certain land acquisitions.
Section 6902 payments are determined based on a multipart formula (31 U.S.C. §6903). Payments are calculated Section 6902 payments are determined based on a multipart formula (31 U.S.C. §6903). Payments are calculated
according to several factors, including (1) the number of acres of entitlement land present within the unit of local according to several factors, including (1) the number of acres of entitlement land present within the unit of local
government’s jurisdiction; (2) a per-acre calculation determined by one of two alternatives (government’s jurisdiction; (2) a per-acre calculation determined by one of two alternatives (Alternative A, also , also
called the called the standard rate, or , or Alternative B, also called the , also called the minimum provision); (3) a population-based maximum ); (3) a population-based maximum
payment (ceiling); (4) selected prior-year payments made to the counties pursuant to certain other federal payment (ceiling); (4) selected prior-year payments made to the counties pursuant to certain other federal
compensation programs; and (5) the amount appropriated to cover the payments. Section 6904 and Section 6905 compensation programs; and (5) the amount appropriated to cover the payments. Section 6904 and Section 6905
payments are provided to counties after the federal acquisition of specific types of entitlement lands (Section payments are provided to counties after the federal acquisition of specific types of entitlement lands (Section
6904) or entitlement lands located in specific areas (Section 6905) and are based on the fair market value of the 6904) or entitlement lands located in specific areas (Section 6905) and are based on the fair market value of the
acquisitions. If the appropriated amount is insufficient to cover the total payment amounts authorized in Sections acquisitions. If the appropriated amount is insufficient to cover the total payment amounts authorized in Sections
6902, 6904, and 6905, payments are prorated in proportion to the authorized rate. 6902, 6904, and 6905, payments are prorated in proportion to the authorized rate.
Before FY2008, PILT was funded through the annual discretionary appropriations process. In some of those Before FY2008, PILT was funded through the annual discretionary appropriations process. In some of those
years, the appropriation was less than the authorized full funding level, so each county received a prorated years, the appropriation was less than the authorized full funding level, so each county received a prorated
payment in those years. Since FY2008, payment in those years. Since FY2008, ~~however,~~ PILT has been funded entirely through mandatory appropriations PILT has been funded entirely through mandatory appropriations
for all years except three (FY2015, FY2016, for all years except three (FY2015, FY2016, and FY2017)~~and FY2017), including the FY2023 payment set to be made around~~
~~June 2023~~. In FY2015, PILT was funded through both mandatory and discretionary funding. In FY2016 and . In FY2015, PILT was funded through both mandatory and discretionary funding. In FY2016 and
FY2017, PILT was funded entirely through discretionary appropriations. FY2017, PILT was funded entirely through discretionary appropriations.
PILT is of perennial interest to many Members of Congress and stakeholders throughout the country, and many PILT is of perennial interest to many Members of Congress and stakeholders throughout the country, and many
local governments consider PILT payments to be an integral part of their annual budgets. Congress local governments consider PILT payments to be an integral part of their annual budgets. Congress ~~may consider~~
has considered topics and legislation related to the eligibility of various federal lands for entitlement under PILT (such as Indian topics and legislation related to the eligibility of various federal lands for entitlement under PILT (such as Indian
lands or other lands currently excluded from compensation), amendments to the formula for calculating payments lands or other lands currently excluded from compensation), amendments to the formula for calculating payments
(especially under Section 6902), and issues related to funding PILT, among other matters. (especially under Section 6902), and issues related to funding PILT, among other matters.
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Payments in Lieu of Taxes (PILT) Introduction
The Department of the Interior’s (DOI’s) Payments in Lieu of Taxes (PILT) program provides The Department of the Interior’s (DOI’s) Payments in Lieu of Taxes (PILT) program provides
compensation for certain compensation for certain entitlement lands that are exempt from state and local taxes.1 These that are exempt from state and local taxes.1 These
~~lands~~ include include ~~selected~~most federal lands administered by the Bureau of Land Management, the federal lands administered by the Bureau of Land Management, the
National Park Service, and the U.S. Fish and Wildlife Service, all in DOINational Park Service, and the U.S. Fish and Wildlife Service, all in DOI~~; lands administered~~, and by by
the U.S. Forest Service in the Department of Agriculture; federal water projects; dredge disposal the U.S. Forest Service in the Department of Agriculture; federal water projects; dredge disposal
areas; and some military installations.2 Enacted in 1976,3 PILT is the broadest—in terms of areas; and some military installations.2 Enacted in 1976,3 PILT is the broadest—in terms of
federal land types covered—of several federal programs enacted to provide compensation to state federal land types covered—of several federal programs enacted to provide compensation to state
or local governments for the presence of tax-exempt federal lands within their jurisdictions.4 or local governments for the presence of tax-exempt federal lands within their jurisdictions.4
PILT was enacted in response to a shift in federal policy from one that prioritized disposal of PILT was enacted in response to a shift in federal policy from one that prioritized disposal of
federal lands—in which federal ownership was considered to be temporary—to one that federal lands—in which federal ownership was considered to be temporary—to one that
prioritized retention of federal lands, in perpetuity, for public benefit.5 This shift began in the late prioritized retention of federal lands, in perpetuity, for public benefit.5 This shift began in the late
19th century and 19th century and ~~continued into the 20th century~~has continued. Along with this shift came the understanding . Along with this shift came the understanding
that, because these lands were exempt from state and local taxation and were no longer likely to that, because these lands were exempt from state and local taxation and were no longer likely to
return to the tax base in the foreseeable future, some compensation should be provided to the return to the tax base in the foreseeable future, some compensation should be provided to the
impacted local governments. Following several decades of commissions, studies, and proposed impacted local governments. Following several decades of commissions, studies, and proposed
~~legislation, Congress passed PILT to at least partially ameliorate this hardship~~legislation, PILT was enacted to ameliorate this hardship at least in part.6 PILT payments .6 PILT payments
generally can be used for “any governmental purpose,”7 which may include assisting local generally can be used for “any governmental purpose,”7 which may include assisting local
governments with paying for local services, such as “firefighting and police protection, governments with paying for local services, such as “firefighting and police protection,
construction of public schools and roads, and search-and-rescue operations.”8 construction of public schools and roads, and search-and-rescue operations.”8

1 The Department of Energy also implements a separate Payments in Lieu of Taxes (PILT) program, as authorized by 1 The Department of Energy also implements a separate Payments in Lieu of Taxes (PILT) program, as authorized by
the Atomic Energy Act of 1954 (P.L. 83-703, 42 U.S.C. §2208), not discussed in this report. This report also does not the Atomic Energy Act of 1954 (P.L. 83-703, 42 U.S.C. §2208), not discussed in this report. This report also does not
discuss the payments made to PILT counties through the Local Assistance and Tribal Consistency Fund (LATCF), discuss the payments made to PILT counties through the Local Assistance and Tribal Consistency Fund (LATCF),
established in the American Rescue Plan (P.L. 117-2, Sec. 9901). Receiving PILT payments was one factor for established in the American Rescue Plan (P.L. 117-2, Sec. 9901). Receiving PILT payments was one factor for
determining eligibility to receive a payment through the LATCF. Under the LATCF, eligible counties received $750 determining eligibility to receive a payment through the LATCF. Under the LATCF, eligible counties received $750
million in FY2022 and FY2023. In addition, certain eligible consolidated local governments are to receive $10.5 million in FY2022 and FY2023. In addition, certain eligible consolidated local governments are to receive $10.5
million in FY2023 and FY2024. For more information, see the Department of million in FY2023 and FY2024. For more information, see the Department of the Treasury’s LATCF website at Treasury’s LATCF website at
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/local-assistance-https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/local-assistance-
and-tribal-consistency-fund. and-tribal-consistency-fund.
2 31 U.S.C. §§6901-6907. PILT implementing regulations are provided at 43 C.F.R. Part 44. 2 31 U.S.C. §§6901-6907. PILT implementing regulations are provided at 43 C.F.R. Part 44.
~~3 PILT was originally~~See “Entitlement Lands” for more detail on the categories of entitlement lands. 3 PILT originally was enacted in 1976 through P.L. 94-565. In 1982, PILT was “revised, codified, and enacted” in Title enacted in 1976 through P.L. 94-565. In 1982, PILT was “revised, codified, and enacted” in Title
31 of the 31 of the U.S. Code pursuant to Chapter 69 of P.L. 97-258. pursuant to Chapter 69 of P.L. 97-258. Subsequently, PILT has been amended multiple times. PILT has been amended multiple times.
4 Although PILT is the broadest of these compensatory programs, it is not the oldest, and PILT provides compensation 4 Although PILT is the broadest of these compensatory programs, it is not the oldest, and PILT provides compensation
for defined entitlement lands only (31 U.S.C. §6901(1)). Other programs may include additional lands as defined by for defined entitlement lands only (31 U.S.C. §6901(1)). Other programs may include additional lands as defined by
those programs. Several of those programs may be partially offset in PILT through the consideration of those programs. Several of those programs may be partially offset in PILT through the consideration of prior-year
payments. Those programs are listed at 31 U.S.C. §6903(a)(1). . Those programs are listed at 31 U.S.C. §6903(a)(1).
5 For more information, see Public Land Law Review Commission, 5 For more information, see Public Land Law Review Commission, One Third of the Nation’s Land: A Report to the
President and to the Congress, June 1970, pp. 235-241. This report was produced pursuant to P.L. 88-606. , June 1970, pp. 235-241. This report was produced pursuant to P.L. 88-606.
6 For more information, see U.S. Congress, House Committee on Interior and Insular Affairs, 6 For more information, see U.S. Congress, House Committee on Interior and Insular Affairs, Payments In Lieu of
Taxes Act, report to accompany H.R. 9719, 94th Cong., 2nd sess., May 7, 1976, H.Rept. 94-1106; and U.S. Congress, , report to accompany H.R. 9719, 94th Cong., 2nd sess., May 7, 1976, H.Rept. 94-1106; and U.S. Congress,
Senate Committee on Interior and Insular Affairs, Senate Committee on Interior and Insular Affairs, Providing for Payments to Local Governments Based upon the
Amount of Certain Public Lands Within the Boundaries of Each Such Government, report to accompany H.R. 9719, , report to accompany H.R. 9719,
94th Cong., 2nd sess., September 20, 1976, S.Rept. 94-1262. 94th Cong., 2nd sess., September 20, 1976, S.Rept. 94-1262.
7 31 U.S.C. §6902(a), 31 U.S.C. §6904(b), and 31 U.S.C. §6905(a) and (b)(3). 7 31 U.S.C. §6902(a), 31 U.S.C. §6904(b), and 31 U.S.C. §6905(a) and (b)(3). Neither the law nor implementing regulations define “governmental purpose.” However, both §6904 and §6905 require However, both §6904 and §6905 require
that certain funds provided through these sections are made available to school districts and other local governmental that certain funds provided through these sections are made available to school districts and other local governmental
units within the local jurisdiction. units within the local jurisdiction.
8 For more information, see Department of the Interior (DOI), 8 For more information, see Department of the Interior (DOI), Fiscal Year ~~2022~~2023 Payments In Lieu of Taxes, National
Summary, available at https://www.doi.gov/pilt (hereinafter,, available at https://www.doi.gov/pilt (hereinafter, National Summary ~~FY2022~~FY2023). ).
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The Office of the Secretary in DOI is responsible for the calculation and disbursement of The Office of the Secretary in DOI is responsible for the calculation and disbursement of
payments under PILT.9 Payments under PILT are made annually to payments under PILT.9 Payments under PILT are made annually to units of general local
government—typically counties, though other types of governmental units also may be used —typically counties, though other types of governmental units also may be used
(hereinafter, (hereinafter, counties refers to units of general local government)—containing refers to units of general local government)—containing entitlement lands. .
PILT comprises three separate payment mechanisms: Section 6902, Section 6904, and Section PILT comprises three separate payment mechanisms: Section 6902, Section 6904, and Section
6905 payments, all named for the sections of law in which they are authorized.10 Section 6902 6905 payments, all named for the sections of law in which they are authorized.10 Section 6902
payments account for nearly all payments made through PILT. The Section 6902 payments account for nearly all payments made through PILT. The Section 6902 ~~authorized~~
~~payment~~ amount for each county is calculated according to a statutory formula that is subject to a amount for each county is calculated according to a statutory formula that is subject to a
maximum payment based on the county’s population (see maximum payment based on the county’s population (see “PILT Payments Under Section
6902”).11 The remaining payments are provided through Section 6904 and Section 6905 under .11 The remaining payments are provided through Section 6904 and Section 6905 under
selected circumstances and typically are limited in duration. Through selected circumstances and typically are limited in duration. Through ~~FY2022~~FY2023, PILT payments , PILT payments
have totaled approximately have totaled approximately ~~$10.8~~$11.4 billion.12 billion.12
This report provides an overview of the PILT payment program and includes sections on This report provides an overview of the PILT payment program and includes sections on
• PILT’s authorization and appropriations, which discusses the history of how PILT’s authorization and appropriations, which discusses the history of how
Congress has provided funding for PILT; Congress has provided funding for PILT;
• Section 6902 payments, which includes a breakdown of how Section 6902 Section 6902 payments, which includes a breakdown of how Section 6902
payments are calculated; payments are calculated;
• Section 6904 and Section 6905 payments, which outlines what situations result in Section 6904 and Section 6905 payments, which outlines what situations result in
payments under these mechanisms; and payments under these mechanisms; and
• issues for Congress, which discusses several topics that have been or may be of issues for Congress, which discusses several topics that have been or may be of
interest to Members of Congress when considering the PILT program. interest to Members of Congress when considering the PILT program.
Selected Terms Used in This Report
Authorized payment: the amount a county is eligible to receive based on the formula/requirements specified in : the amount a county is eligible to receive based on the formula/requirements specified in
statute, prior to any reductions for administrative costs or due to insufficient appropriations. statute, prior to any reductions for administrative costs or due to insufficient appropriations.
Entitlement lands: statutorily defined federally owned lands that are exempt from state and local taxes and are : statutorily defined federally owned lands that are exempt from state and local taxes and are
eligible to be the basis for determining a county’s eligibility for PILT payments. This term is defined in statute at 31 eligible to be the basis for determining a county’s eligibility for PILT payments. This term is defined in statute at 31
U.S.C. §6901(1).U.S.C. §6901(1).
Full statutory calculation: the sum of : the sum of authorized payments under Section 6902, Section 6904, and Section 6905 for all under Section 6902, Section 6904, and Section 6905 for all
counties in a given year. counties in a given year.
Inflation: used here to refer to the statutorily required annual adjustment to the : used here to refer to the statutorily required annual adjustment to the per-acre payment rates and the and the
population payment rate. The adjustment is made to reflect changes in the Consumer Price Index published by the . The adjustment is made to reflect changes in the Consumer Price Index published by the
Bureau of Labor Statistics of the Department of Labor for the previous 12 months ending June 30. This provision Bureau of Labor Statistics of the Department of Labor for the previous 12 months ending June 30. This provision
is required pursuant to 31 U.S.C. §6903(d). is required pursuant to 31 U.S.C. §6903(d).
Per-acre payment rates: one of the two dol ar amounts that are multiplied by the number of acres of : one of the two dol ar amounts that are multiplied by the number of acres of entitlement land
as part of the formula to calculate the as part of the formula to calculate the authorized payment under Section 6902 (31 U.S.C. §6903(b)(1) under Section 6902 (31 U.S.C. §6903(b)(1)). These rates . These rates
are adjusted annually for are adjusted annually for inflation. In . In ~~FY2022~~FY2023, the , the per-acre payment rates were $ were $~~2.94~~3.15 per acre for Alternative A and per acre for Alternative A and
$0.$0.4345 per acre for Alternative B. per acre for Alternative B.
Population-based ceiling: the maximum payment a county is eligible to receive under Section 6902. This figure is : the maximum payment a county is eligible to receive under Section 6902. This figure is
calculated by multiplying the county’s population (as rounded or not rounded, pursuant to statute [31 U.S.C. calculated by multiplying the county’s population (as rounded or not rounded, pursuant to statute [31 U.S.C.
§6903(c)(1)]) by the applicable §6903(c)(1)]) by the applicable population payment rate. .

9 Although the DOI Office of the Secretary administers the payments, it relies upon data from federal agencies within 9 Although the DOI Office of the Secretary administers the payments, it relies upon data from federal agencies within
and outside of DOI (e.g., the federal land management agencies and the Census Bureau in the Department of and outside of DOI (e.g., the federal land management agencies and the Census Bureau in the Department of
Commerce) and state agencies to calculate the annual payments. Commerce) and state agencies to calculate the annual payments.
10 These sections refer to 31 U.S.C. §§6902, 6904, and 6905. 10 These sections refer to 31 U.S.C. §§6902, 6904, and 6905.
11 PILT payments may be subject to additional requirements provided in appropriations laws. For example, provisions 11 PILT payments may be subject to additional requirements provided in appropriations laws. For example, provisions
for for ~~prorated payments~~unit, set-aside, and minimum payments were all included in Title I of Division G in P.L. 117-328 for , set-aside, and minimum payments were all included in Title I of Division G in P.L. 117-328 for
FY2023. FY2023.
12 Figure in current dollars. 12 Figure in current dollars. National Summary ~~FY2022~~FY2023, p. , p. 15. .
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Population payment rate: the dol ar amount that is multiplied by a county’s population to determine the : the dol ar amount that is multiplied by a county’s population to determine the population-
based ceiling, as provided in statute (31 U.S.C. §6903(c)(2)). The as provided in statute (31 U.S.C. §6903(c)(2)). The population payment rate declines with increasing declines with increasing
population. This rate is adjusted for population. This rate is adjusted for inflation. .
Prior-year payments: payments received by a county for federally owned lands in its jurisdiction through certain : payments received by a county for federally owned lands in its jurisdiction through certain
federal compensation programs other than PILT. These programs refer to one of the “payment law[s]” listed in federal compensation programs other than PILT. These programs refer to one of the “payment law[s]” listed in
statute (31 U.S.C. §6903(a)(1)). statute (31 U.S.C. §6903(a)(1)).
Prorated payment: the actual payment received by a county when appropriated funds are insufficient to cover the: the actual payment received by a county when appropriated funds are insufficient to cover the
authorized payments. The . The prorated payment is determined by the amount appropriated for PILT that is available to is determined by the amount appropriated for PILT that is available to
cover payments and is proportional to the cover payments and is proportional to the authorized payment for each county. for each county.
~~Unit~~Units of general local government (hereinafter, referred to as hereinafter, referred to as county): jurisdictional entity eligible to receive payments jurisdictional entity eligible to receive payments
under PILT. These entities are most often counties but may include other jurisdictional units such as parishes, under PILT. These entities are most often counties but may include other jurisdictional units such as parishes,
boroughs, census areas, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. This term is defined boroughs, census areas, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. This term is defined
in statute at 31 U.S.C. §6901(2).in statute at 31 U.S.C. §6901(2).
Notes: These terms are defined as used in this report and may be used differently elsewhere. Further, these These terms are defined as used in this report and may be used differently elsewhere. Further, these
terms may not be defined in statute, except where noted.terms may not be defined in statute, except where noted.
PILT Authorizations and Appropriations
~~Congress has funded PILT~~PILT has been funded through both discretionary and mandatory appropriations at various through both discretionary and mandatory appropriations at various
~~times since the program was first authorized. Some stakeholders and policymakers have routinely~~
~~expressed concern about changes in the appropriations authority, including both the process of~~
~~switching between mandatory and~~times. PILT was funded through discretionary appropriations from its enactment in 1976 through FY2007 and in FY2015 (in part) and FY2016-2017. In other years, PILT received mandatary appropriations, namely for FY2008-FY2014, FY2015 (in part), and FY2018-FY2023. More specifically, beginning in FY1976, the authority for PILT to receive discretionary discretionary appropriations read as follows: “There are authorized to be appropriated for carrying out the provisions of this Act such sums as may be necessary: Provided, That, notwithstanding any other provision of this Act no funds may be made available except to the extent provided in advance in appropriation Acts.”13 In 1982, PILT was amended to provide~~appropriations and the uncertainty that may~~
~~accompany such changes.~~
~~From 1982 to 2008, Section 6906 provided~~ an “Authorization of Appropriations” an “Authorization of Appropriations” ~~for PILT~~heading, which , which
stated that “necessary amounts may be appropriated to the Secretary of the Interior to carry out stated that “necessary amounts may be appropriated to the Secretary of the Interior to carry out
~~[PILT].”13 Further, it clarified~~[PILT]” and specified that “amounts are available only as provided in appropriation that “amounts are available only as provided in appropriation
~~laws.”14 Congress amended this language in 2008 and changed the section title from~~
laws.”14 In 2008, legislation was enacted to provide mandatory appropriations for PILT for FY2008-FY2012. The legislation changed the heading of the program’s funding from “Authorization of Appropriations” to “Funding“Authorization of Appropriations” to “Funding~~.”15 Further, Congress changed~~” and amended the text to read the text to read
For each of fiscal years 2008 through 2012- For each of fiscal years 2008 through 2012-
(1) each county or other eligible unit of local government shall be entitled to payment under (1) each county or other eligible unit of local government shall be entitled to payment under
this chapter; and this chapter; and
(2) sums shall be made available to the Secretary of the Interior for obligation or (2) sums shall be made available to the Secretary of the Interior for obligation or
expenditure in accordance with this chapter.expenditure in accordance with this chapter.16
~~This amendment effectively changed PILT funding from discretionary to mandatory for the years~~
~~specified (see Table 1 for PILT funding since FY2005). Since 2008, Congress has amended~~
~~Section 6906 several times by changing the fiscal year in the first line through both annual~~
~~discretionary appropriations laws and other legislative vehicles (Table 1).~~

~~13 31 U.S.C. §6906, prior to the enactment of P.L. 110-343. Between 1976 and 1982, the authorization of~~
~~appropriations from PILT was codified at 31 U.S.C. §1607 and read, “There are authorized to be appropriated for~~
~~carrying out the provisions of this Act such sums as may be necessary: Provided, That, notwithstanding any other~~
~~provision of this Act no funds may be made available except to the extent provided in advance in appropriations.” P.L.~~
~~94-565, §7.~~
~~14 31 U.S.C. §6906, prior to the enactment of P.L. 110-343.~~
~~15 P.L. 110-343, Div. C, Title VI, §601(c)(1).~~
1615 Subsequently, PILT’s funding provision (31 U.S.C. §6906) was amended several times. For instance, for each of FY2018 through FY2023, appropriations laws provided funding for PILT by amending the authority provided in 31 U.S.C. §6906. This was treated as mandatory spending. Table 1 shows PILT appropriations over the 10 years from FY2014 through FY2023. The total payments to counties often were slightly different from the appropriations shown, in part because 13 P.L. 94-565, §7. 14 P.L. 97-258, §6906. 15 P.L. 110-343, Div. C, Title VI, §601(c)(1). Congressional Research Service 3 link to page 8 The Payments in Lieu of Taxes (PILT) Program: An Overview relatively small amounts of the total appropriations were authorized for program administration. For instance, of the $579.2 million appropriation for FY2023, $0.4 million was authorized for program administration. DOI distributed $578.8 million to counties for FY2023. Table 1. PILT Appropriations, FY2014-FY2023 (nominal dollars) Fiscal Appropriation Year Statute Funding Type (millions) FY2014 P.L. 113-79 Mandatory $437.3 FY2015 P.L. 113-235 Discretionary ($372.0 $439.5 mil ion) P.L. 113-291 Mandatory ($33.0 mil ion — and ~~P.L. 110-343, Div. C, Title VI, §601(c)(1).~~
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~~Table 1. PILT Appropriations and Funding, FY2005-FY2023~~
~~(nominal dollars)~~
~~Total~~
~~Total~~
~~Authorized~~
~~Appropriated~~
~~Fiscal~~
~~Amount~~
~~Amount~~
%
~~Year~~
~~Statute~~
~~Funding Type~~
~~(millions)~~
~~(millions)~~
~~Appropriateda~~
~~FY2005~~
~~P.L. 108-447 Discretionary~~
~~$332.0~~
~~$226.8~~
~~68.3%~~
~~FY2006~~
~~P.L. 109-54~~
~~Discretionary~~
~~$344.4~~
~~$232.5~~
~~67.5%~~
~~FY2007~~
~~P.L. 110-5~~
~~Discretionary~~
~~$358.3~~
~~$232.5~~
~~64.9%~~
~~FY2008-~~
~~P.L. 110-343 Mandatory~~
~~Set in PILT~~
~~Set in PILT~~
~~100%~~
~~FY2012~~
~~formula~~
~~formula~~
~~FY2013~~
~~P.L. 112-141 Mandatory~~
~~$421.7~~
~~$400.2~~
~~94.9%b~~
~~FY2014~~
~~P.L. 113-79~~
~~Mandatory~~
~~$437.3~~
~~$437.3~~
~~100%~~
~~FY2015~~
~~P.L. 113-235 Discretionary ($372.0 mil ion)~~
~~$451.5~~
~~$439.5~~
~~97.3%c~~

~~P.L. 113-291 Mandatory ($33.0 mil ion and~~
—
—
—
~~$34.5 mil ion~~)c$34.5 mil ion)a
FY2016 FY2016
P.L. 114-113 P.L. 114-113 ~~Discretionary~~
~~$459.5~~
Discretionary $452.0 $452.0
~~98.4%~~
FY2017 FY2017
P.L. 115-31 P.L. 115-31
Discretionary Discretionary
$465. $465.9
~~$465.0~~
~~99.8%~~0
FY2018 FY2018
P.L. 115-141 P.L. 115-141 ~~Mandatoryd~~
~~$553.2~~ Mandatory
$553.2 $553.2
~~100%~~
FY2019 FY2019
P.L. 116-6 P.L. 116-6
~~Mandator~~ydMandatory
$515.1 $515.1
~~$515.1~~
~~100%~~
FY2020 FY2020
P.L. 116-94 P.L. 116-94
~~Mandatoryd~~
~~$514.8~~
~~$514.8~~
~~100%~~Mandatory $515.1
FY2021 FY2021
P.L. 116-260 P.L. 116-260
~~Mandator~~ydMandatory $529.7
~~$529.6~~
~~$529.7e~~
~~100%~~
FY2022 FY2022
P.L. 117-103 P.L. 117-103
~~Mandator~~ydMandatory
$549.8 $549.8
~~$549.8~~
~~100%~~
FY2023 FY2023
P.L. 117-328 P.L. 117-328
~~Mandatoryd~~
~~TBDf~~
~~TBDf~~
~~100%~~Mandatory $579.2
Source: CRS, with data from listed public laws and relevant annual CRS, with data from listed public laws and relevant annual DOI reports, available at https://www.doi.gov/pilt/reports, available at https://www.doi.gov/pilt/
resources/annual-reports. resources/annual-reports.
Notes: Appropriated amounts may include rescissions as provided in relevant statutesAppropriated amounts may include rescissions as provided in relevant statutes and adjustments from prior years. Figures are presented in . Figures are presented in
nominal dol ars, though note that the PILT payment formula incorporates nominal dol ars, though note that the PILT payment formula incorporates an annual inflation adjustment. For FY2018 through FY2023, PILT funding was provided by amending 31 U.S.C. §6906 (“Funding”) each fiscal year. As a result, the funding for PILT was treated as mandatory spending in these years. These amendments required funding for PILT for each of these years to be provided at the amount of the ful statutory calculation. a. For FY2015, the mandatory appropriations in P.L. 113-291 totaled $70.0 mil ion. This ~~an annual inflation adjustment.~~
~~a. This column represents the percentage of the authorized amount that was appropriated for a given year.~~
~~Even for years in which 100% of the authorized amount was appropriated, counties may have received a~~
~~prorated payment due to part of the appropriation being set aside for uses other than payments (e.g., for~~
~~administration).~~
~~b. PILT appropriations in FY2013 were impacted by sequestration pursuant to the Balanced Budget and~~
~~Emergency Deficit Control Act (2 U.S.C. §§900 et seq.), as amended by the Budget Control Act of 2011~~
~~(P.L. 112-25).~~
~~c. For FY2015 PILT payments, Congress provided $70 mil ion in mandatory appropriations (P.L. 113-291). This~~
~~appropriation was~~ appropriation was split, with $33split, with $33.0 mil ion to be provided in FY2015 and $37 mil ion to be provided in FY2015 and $37.0 mil ion to be available in mil ion to be available in
October 2015October 2015~~, which, while paid in FY2016, was for FY2015 payments. Of the $70~~ (for FY2015 payments, although paid in FY2016). Of the $70.0 mil ion in mandatory mil ion in mandatory
appropriations, the $37appropriations, the $37 .0 mil ion available in October 2015 mil ion available in October 2015 ~~(FY2016)~~ was subject to sequestration, which was subject to sequestration, which
reduced the appropriated amount to reduced the appropriated amount to $34.5 mil ion. Figure 1 shows the authorizations and appropriations for PILT from FY1993 to FY2023. For many of the earlier years during this period, PILT received discretionary appropriations that were not at the full authorized level (e.g., FY1995-FY2007). In contrast, for most years when PILT received mandatory appropriations, the appropriations essentially were at the full level calculated under the statute (e.g., FY2018-FY2023).16 In addition, since FY2008, PILT appropriations have been provided through both one-year and multiyear appropriations. 16 An exception is FY2013, when PILT appropriations were impacted by sequestration pursuant to the Balanced Budget and Emergency Deficit Control Act (2 U.S.C. §§900 et seq.), as amended by the Budget Control Act of 2011 (P.L. 112-25). Congressional Research Service 4 link to page 8 The Payments in Lieu of Taxes (PILT) Program: An Overview Figure 1. PILT Authorizations and Appropriations, FY1993-FY2023 (in current and inflation-adjusted estimated FY2023 dollars) Source: CRS, with data from PILT National Summaries, FY1993 through FY2023. Notes: The authorized and appropriated figures shown in bars reflect current (nominal) dol ars. The line reflects inflation-adjusted estimated FY2023~~$34.5 mil ion.~~
~~d. For FY2018 through FY2023, PILT funding was provided by amending 31 U.S.C. §6906 (“Funding”) each~~
~~fiscal year. As a result, the funding for PILT was treated as mandatory spending in these years. These~~
~~amendments required funding for PILT for each of these years to be provided at the amount of the ful~~
~~statutory calculation.~~
~~e. Appropriations for FY2021 included additional funds ($43,751) for adjustments to errors in prior year~~
~~payments.~~
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f.
~~Although appropriations for PILT payments were enacted at the ful statutory level pursuant to Section 114~~
~~of Title 1 of Division G in P.L. 117-328, the exact amount that wil be appropriated wil not be known until~~
~~DOI issues the FY2023 payments and reports.~~
~~PILT was funded through discretionary appropriations from its enactment through FY2007. Since~~
~~FY2008, Congress has provided funding for PILT through both discretionary and mandatory~~
~~appropriations (Table 1). From FY2008 through FY2014, Congress authorized mandatory~~
~~funding for PILT through several laws. In FY2015, PILT received both discretionary and~~
~~mandatory appropriations. For FY2016 through FY2023, Congress funded PILT through the~~
~~annual appropriations bills, though the funding was considered mandatory in some years. In~~
~~FY2016 and FY2017, the appropriations laws provided specific funding levels for PILT, which~~
~~was treated as discretionary spending. From FY2018 through FY2023, the appropriations laws~~
~~provided funding for PILT by amending the authority provided in 31 U.S.C. §6906, which was~~
~~treated as mandatory spending. In each of the years PILT received mandatory appropriations,~~
~~funding was provided at the full statutory calculation levels.~~
~~Since FY2008, Congress has provided funding for PILT through both one-year and multiyear~~
~~appropriations. Congress’s actions have resulted in full funding and partial funding in different~~
~~years (Table 1 and Figure 1). These types of changes from year to year may have implications~~
~~for counties that rely on PILT funding as part of their annual budgets.~~
~~Figure 1. PILT Authorizations and Appropriations, FY1993-FY2022~~
~~(in current and inflation-adjusted FY2022 dollars)~~

Source: CRS, with data from PILT National Summaries, FY1993 through FY2022.
Notes: The authorized and appropriated figures shown in bars reflect current (nominal) dol ars. The line reflects
~~inflation-adjusted FY2022~~ dol ars using the Office of Management and Budget’s GDP Chained Price Index. The dol ars using the Office of Management and Budget’s GDP Chained Price Index. The
FY2013 and part of the FY2015 appropriations were subject to sequestration pursuant to the Balanced Budget FY2013 and part of the FY2015 appropriations were subject to sequestration pursuant to the Balanced Budget
and Emergency Deficit Control Act (2 U.S.C. §§900 et seq.), as amended by the Budget Control Act of 2011 (P.L. and Emergency Deficit Control Act (2 U.S.C. §§900 et seq.), as amended by the Budget Control Act of 2011 (P.L.
112-25). 112-25).
In addition to appropriating funding for the program, In addition to appropriating funding for the program, through the annual appropriations process Congress typically~~Congress regularly~~ provides other guidance provides other guidance
to DOI on implementing PILTto DOI on implementing PILT ~~through the annual appropriations process, such as~~. Such guidance has included minimum minimum
payment thresholds, set-asides for program administration, and provisions for payment thresholds, set-asides for program administration, and provisions for prorating ~~prorating~~
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payments.17 When appropriated funding is insufficient to cover the full amount of authorized payments.17 When appropriated funding is insufficient to cover the full amount of authorized
payments under Sections 6902, 6904, and 6905, counties typically receive a proportional payment payments under Sections 6902, 6904, and 6905, counties typically receive a proportional payment
known as a known as a prorated payment. (Figure 1 shows the disparity between the authorized amount and shows the disparity between the authorized amount and
the appropriated amount in certain yearsthe appropriated amount in certain years)..) Even in years in which appropriations are set equal to Even in years in which appropriations are set equal to
100% of the full statutory calculation, payments to counties may be prorated if funding is set 100% of the full statutory calculation, payments to counties may be prorated if funding is set
~~aside for purposes other than payments, such as administration.~~
aside for purposes other than payments, such as administration. Some stakeholders and policymakers have expressed concern about changes over time in the appropriations authority and processes for PILT, due to the uncertainty that may accompany such changes. Changes that have given rise to concerns include switching between discretionary and mandatory appropriations, partial and full funding, and one and multiyear appropriations. Such changes may have implications for counties that rely on PILT funding as part of their annual budgets. 17 For example, in FY2023, provisions were included in P.L. 117-328, Division G, Title I, that barred payment if the authorized payment is less than $100; authorized DOI to retain up to $400,000 for administrative expenses from the authorized payment; directed that payments be reduced proportionally if the appropriated amount is insufficient; and authorized corrections for prior over- or underpayments. Although similar provisions have been included in other appropriations acts, the specific text of these provisions has varied over the years. Congressional Research Service 5 The Payments in Lieu of Taxes (PILT) Program: An Overview PILT Payments Under Section 6902
Section 6902 payments are provided to counties across the United States to compensate for the Section 6902 payments are provided to counties across the United States to compensate for the
presence of entitlement lands within their boundaries. Section 6902 payments are provided to presence of entitlement lands within their boundaries. Section 6902 payments are provided to
states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.18 Section 6902 states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands.18 Section 6902
payments account for nearly all of the payments made under PILT. In payments account for nearly all of the payments made under PILT. In ~~FY2022~~FY2023, 99., 99.8992% of all % of all
PILT payments were made through Section 6902.19 PILT payments were made through Section 6902.19 ~~Further, more counties are eligible for Section~~
~~6902 payments than either Section 6904 or Section 6905 payments. In FY2022, 1,936 of the~~
~~1,940 counties that received PILT payments received Section 6902 payments, and 128 received~~
~~payments under Section 6904 and/or Section 6905 (four counties received payments under~~
~~Section 6904 and/or Section 6905 but did not receive Section 6902 payments).20~~
The payments generally can be used for any governmental purpose, as noted.20 Further, more counties are eligible for Section 6902 payments than either Section 6904 or Section 6905 payments. Entitlement Lands
There are nine categories of federal lands identified as entitlement lands in the PILT statute.21 There are nine categories of federal lands identified as entitlement lands in the PILT statute.21
1. Lands in the National Park System (administered by the National Park Service, in 1. Lands in the National Park System (administered by the National Park Service, in
DOI) DOI)
2. Lands in the National Forest System (administered by the U.S. Forest Service, in 2. Lands in the National Forest System (administered by the U.S. Forest Service, in
the U.S. Department of Agriculture (USDA)) the U.S. Department of Agriculture (USDA))
3. Lands administered by the Bureau of Land Management (BLM) 3. Lands administered by the Bureau of Land Management (BLM)
4. Lands in the National Wildlife Refuge System (NWRS) that are withdrawn from 4. Lands in the National Wildlife Refuge System (NWRS) that are withdrawn from
the public domain (administered by the U.S. Fish and Wildlife Service, in DOI) the public domain (administered by the U.S. Fish and Wildlife Service, in DOI)22
5. Lands dedicated to the use of federal water resources development 5. Lands dedicated to the use of federal water resources development ~~projects22~~projects23
6. Dredge disposal areas under the jurisdiction of the U.S. Army Corps of Engineers 6. Dredge disposal areas under the jurisdiction of the U.S. Army Corps of Engineers
7. Lands located in the vicinity of Purgatory River Canyon and Piñon Canyon, CO, 7. Lands located in the vicinity of Purgatory River Canyon and Piñon Canyon, CO,
that were acquired after December 31, 1981, to expand the Fort Carson military that were acquired after December 31, 1981, to expand the Fort Carson military
reservation reservation

~~17 For example, in FY2020, provisions were included in Title I of Division D in P.L. 116-94 that specified that no~~
~~payment is to be made if the authorized payment is less than $100; to authorize DOI to retain up to $400,000 from the~~
~~authorized payment for administrative expenses; to allow for payments to be reduced proportionally if the appropriated~~
~~amount is insufficient; and to correct for prior over- or underpayments. Although similar provisions have routinely~~
~~been included in appropriations acts, the specific text of these provisions has varied.~~
~~18 31 U.S.C. §6901(2).~~
19 National Summary FY2022 8. Lands on which are located semi-active or inactive Army installations used for mobilization and for reserve component training 9. Certain lands acquired by DOI or the USDA under the Southern Nevada Public Land Management Act (P.L. 105-263) Some of these categories largely account for all of the lands managed by the relevant administering agencies (e.g., categories 1-3). The U.S. Fish and Wildlife entitlement acreage excludes lands that were purchased as additions to the NWRS and lands that are not included in the NWRS. Some of the other categories are lands tied to specific laws or actions (e.g., categories 18 31 U.S.C. §6901(2). 19 National Summary FY2023, p. 8. 20 31 U.S.C. §6902(a). 21 31 U.S.C. §6901(1). 22 Public domain lands “refers to public lands the United States obtained title to through treaty, purchase, or annexation that have never left federal ownership.” For more information on public domain and acquired lands, see U.S. Fish and Wildlife Service, Statistical Data Tables for Fish &Wildlife Service Lands (as of 9/30/2022), available at https://www.fws.gov/library/collections/national-wildlife-refuge-system-annual-lands-reports. 23 This includes lands administered by the U.S. Army Corps of Engineers and the Bureau of Reclamation. National Summary FY2023, p. 3. Congressional Research Service 6 link to page 11 The Payments in Lieu of Taxes (PILT) Program: An Overview 7 and 9) or may ~~, p. 8.~~
~~20 National Summary FY2022, Schedule 1. The four counties that received FY2022 PILT payments under §6904 and/or~~
~~§6905 but did not receive §6902 payments: Berkshire County, MA; Beaufort County, SC; Hancock County, ME; and~~
~~Rutland County, VT.~~
~~21 31 U.S.C. §6901(1).~~
~~22 Most of these lands are under the jurisdiction of the Bureau of Reclamation.~~
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~~8. Lands on which are located semi-active or inactive Army installations used for~~
~~mobilization and for reserve component training~~
~~9. Certain lands acquired by DOI or the USDA under the Southern Nevada Public~~
~~Land Management Act (P.L. 105-263)~~
~~Of these categories, the first three (National Park System, National Forest System, and lands~~
~~administered by BLM) largely account for all of the lands managed by the relevant administering~~
~~agencies. The remaining categories are either lands tied to specific laws or actions (categories 7~~
~~and 9, above) or lands that represent a subset of the lands administered by a particular agency. For~~
~~example, entitlement lands that are included within the NWRS (category 4) only account for~~
~~lands within the system that have been withdrawn from the public domain, which excludes lands~~
~~that have been purchased as additions to the NWRS.23 Further, lands administered by the U.S.~~
~~Fish and Wildlife Service that are not included in the NWRS are not included within the~~
~~definition of entitlement lands. Similarly, lands in the other categories (5, 6, and 8, above) may~~
not include all, or even the majority of, lands administered by particular agencies or departmentsnot include all, or even the majority of, lands administered by particular agencies or departments. (e.g., category 8).24
Calculating Section 6902 Payments
Section 6902 payments are determined based on a multipart formula (seSection 6902 payments are determined based on a multipart formula (see Figure 2). The DOI . The DOI
Office of the Secretary calculates PILT payments according to several factors, including Office of the Secretary calculates PILT payments according to several factors, including
• the number of entitlement acres; the number of entitlement acres;
• a per-acre calculation determined by one of two alternatives ( a per-acre calculation determined by one of two alternatives (Alternative A, also , also
called the called the standard rate, or , or Alternative B, also called the , also called the minimum provision); );
• a population-based a population-based ~~maximum~~ payment (ceiling); payment (ceiling);
• certain prior-year payments pursuant to other compensation programs; and certain prior-year payments pursuant to other compensation programs; and
• the amount available to cover PILT payments. the amount available to cover PILT payments.
To calculate a particular county’s PILT payment, the DOI Office of the Secretary first must To calculate a particular county’s PILT payment, the DOI Office of the Secretary first must
collect data from several federal agencies and the county’s state to answer the following collect data from several federal agencies and the county’s state to answer the following
questions: questions:
• How many acres of eligible lands are in the county? How many acres of eligible lands are in the county?
• What is the population of the county? What is the population of the county?25 •
 What was the increase in the Consumer Price Index for the 12 months ending the What was the increase in the Consumer Price Index for the 12 months ending the
preceding June 30? preceding June 30?
• What were the prior year’s payments, if any, to the county under the other What were the prior year’s payments, if any, to the county under the other
payment programs of federal agencies? payment programs of federal agencies?24
26 • Do any state laws require payments under other federal land compensation laws Do any state laws require payments under other federal land compensation laws
to be passed through to other local government entities, such as school districts, to be passed through to other local government entities, such as school districts,
rather than stay with the county government? rather than stay with the county government?

~~23 Public domain lands “refers to public lands the United States obtained title to through treaty, purchase, or annexation~~
~~that have never left federal ownership.” For more information public domain and acquired lands, see U.S. Fish and~~
~~Wildlife Service, Statistical Data Tables for Fish &Wildlife Service Lands (as of 9/30/2022), available at~~
~~https://www.fws.gov/library/collections/national-wildlife-refuge-system-annual-lands-reports.~~
24 24 For FY2023, there were a total of 606.7 million entitlement acres, as shown in the National Summary FY2023, p. 304. 25 At 31 U.S.C. §6903(a)(2), PILT requires that population is “determined on the same basis that the Secretary of Commerce determines resident population for general statistical purposes.” Pertinent regulations, at 43 C.F.R. §44.21(a)(3), specify that the U.S. Census Bureau provides statistics on the population of each local government. County population data in the National Summary FY2023 reflect the latest count by the U.S. Census Bureau, according to DOI (p. 116). 26 Prior-year payment programs that may affect PILT payments are listed at 31 U.S.C. §6903(a)(1). Prior-year payment programs that may affect PILT payments are listed at 31 U.S.C. §6903(a)(1).
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Figure 2. Steps in Calculating PILT Section 6902 Payments (~~FY2022~~FY2023 Rates)

Sources: CRS, based on PILT statute (31 U.S.C. §§6901-6907). Payment rates for CRS, based on PILT statute (31 U.S.C. §§6901-6907). Payment rates for ~~FY2022~~FY2023 can be found in can be found in
Department of the Interior, Department of the Interior, Fiscal Year ~~2022~~2023 Payments In Lieu of Taxes, National Summary, June , June ~~2022, p. 9,~~ 2023, pp. 9-11, available available
at https://www.doi.gov/pilt. at https://www.doi.gov/pilt.
Note: For more information on Box B (ceiling payments), sFor more information on Box B (ceiling payments), see Figure 3.
The first step in calculating a county’s Section 6902 payment is to determine the number of The first step in calculating a county’s Section 6902 payment is to determine the number of
entitlement acres within the entitlement acres within the ~~county~~county (Figure 2, Box A). The acreage figures are reported to DOI Box A). The acreage figures are reported to DOI
by the various federal agencies that administer the entitlement lands. by the various federal agencies that administer the entitlement lands.
The next step is to calculate the population-based ceiling by multiplying the county’s population The next step is to calculate the population-based ceiling by multiplying the county’s population
by the population payment rate by the population payment rate (Figure 2, Box B). County population data are provided by the Box B). County population data are provided by the
U.S. Census Bureau. The population number for this calculation differs based on the county’s U.S. Census Bureau. The population number for this calculation differs based on the county’s
population level population level (Figure 3): :
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• For counties with populations fewer than 5,000, the county’s actual population is For counties with populations fewer than 5,000, the county’s actual population is
used in the calculation. used in the calculation.
• For counties with populations equal to or greater than 5,000, the county’s For counties with populations equal to or greater than 5,000, the county’s
population is rounded to the nearest 1,000, and this rounded population is used in population is rounded to the nearest 1,000, and this rounded population is used in
the calculation. the calculation.
• All counties with populations greater than 50,000, regardless of their actual All counties with populations greater than 50,000, regardless of their actual
populations, are considered to have a population equal to 50,000 for the purposes populations, are considered to have a population equal to 50,000 for the purposes
of calculating the ceiling. of calculating the ceiling.
The population payment rate is adjusted annually for inflation based on the change in the The population payment rate is adjusted annually for inflation based on the change in the
Consumer Price Index for the 12 months ending on the preceding June 30.Consumer Price Index for the 12 months ending on the preceding June 30.2527 The population The population
payment rate generally declines as population increases in 1,000-person incrementspayment rate generally declines as population increases in 1,000-person increments ~~(per statute)~~.
(Figure 4).26 28 However, this is not always the case. For example, in However, this is not always the case. For example, in ~~FY2022~~FY2023, payment rates for , payment rates for
several populations were the same despite increasing populations, such as the rates for several populations were the same despite increasing populations, such as the rates for
populations of 26,000; 27,000; and 28,000, which are all $populations of 26,000; 27,000; and 28,000, which are all $~~100.72. For FY2022~~107.94 per person. For FY2023, the population , the population
payment rates ranged from $payment rates ranged from $~~197.84~~212.03 per person for counties with populations of less than 5,000 to per person for counties with populations of less than 5,000 to
$$~~79.14~~84.81 per person for counties with populations of 50,000 or greater. per person for counties with populations of 50,000 or greater.2729
Some payment ceilings do not increase with increasing populations. For example, counties with Some payment ceilings do not increase with increasing populations. For example, counties with
populations of 50,000 have a lower ceiling than those with populations of 49,000 (49,000 × populations of 50,000 have a lower ceiling than those with populations of 49,000 (49,000 ×
~~FY2022~~FY2023 payment rate of $ payment rate of $~~80.95 = $3,966,550~~86.75 = $4,250,750; and 50,000 × ; and 50,000 × ~~FY2022~~FY2023 payment rate of $ payment rate of $~~79.14 =~~
~~$3,957,000, or $9,550~~84.81 = $4,240,500, or $10,250 less for the more populous county). less for the more populous county).

25 27 31 U.S.C. §6903(d). 31 U.S.C. §6903(d).
2628 31 U.S.C. §6903(c)(2). Even though the population payment rate Even though the population payment rate generally declines as county population size increases, payment ceilings generally declines as county population size increases, payment ceilings generally
are higher for counties with larger populations. For example, in are higher for counties with larger populations. For example, in ~~FY2022~~FY2023, the population payment rate for a population , the population payment rate for a population
of 5,000 was $of 5,000 was $~~197.84~~212.03 and the rate for a population of 6,000 was $ and the rate for a population of 6,000 was $~~185.28~~198.56, a decrease of $, a decrease of $~~12.56~~13.47 in the rate for the more in the rate for the more
populous county. When multiplied by the population, however, the ceiling is higher for the county with the larger populous county. When multiplied by the population, however, the ceiling is higher for the county with the larger
population: 5,000 population: 5,000 × $212.03 = $1,060,150~~× $197.84 = $989,200~~, versus 6,000 × $, versus 6,000 × $~~185.28 = $1,111,680, or $122,480~~198.56 = $1,191,360, or $131,210 more for the more more for the more
populous county. populous county.
27National Summary FY2023, p. 15. 29 The per capita payment rates are included in the PILT national summary each year. For example, the The per capita payment rates are included in the PILT national summary each year. For example, the National
Summary ~~FY2022~~FY2023, p. , p. 1415, includes the payment rates for , includes the payment rates for ~~FY2022~~FY2023. .
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Figure 3. PILT Population-Based Ceiling Calculation

Source: CRS, with information from 16 U.S.C. §6903. CRS, with information from 16 U.S.C. §6903.
Figure 4. ~~FY2022~~FY2023 PILT Population-Based Ceilings

Source: CRS, with data from Department of the Interior, CRS, with data from Department of the Interior, Fiscal Year ~~2022~~ 2023 Payments In Lieu of Taxes, , National
Summary, p. 15, available at https://www.doi.gov/pilt. , p. 15, available at https://www.doi.gov/pilt.
Notes: Ceiling calculations for counties with populations greater than 5,000 are based on the county’s Ceiling calculations for counties with populations greater than 5,000 are based on the county’s
population rounded to the nearest 1,000 (e.g., a county with a population of 8,499 would be credited with a population rounded to the nearest 1,000 (e.g., a county with a population of 8,499 would be credited with a
population of 8,000, whereas a county with a population of 8,500 would be credited with a population of 9,000). population of 8,000, whereas a county with a population of 8,500 would be credited with a population of 9,000).
Counties cannot be credited with a population above 50,000 (i.e., all counties with populations greater than Counties cannot be credited with a population above 50,000 (i.e., all counties with populations greater than
50,000 are, for the purposes of the ceiling calculation, treated as if they have a population of 50,000). The 50,000 are, for the purposes of the ceiling calculation, treated as if they have a population of 50,000). The
National Summary ~~FY2022~~ FY2023 contains the per capita payment rates for the contains the per capita payment rates for the ~~FY2022~~FY2023 payments. payments.
The next step is to calculate the payment level under Alternatives A and B The next step is to calculate the payment level under Alternatives A and B (Figure 2, Box C). ox C).
Alternative A has a higher per-acre payment rate than Alternative B, but Alternative A is subject Alternative A has a higher per-acre payment rate than Alternative B, but Alternative A is subject
~~to a deduction for prior-year payments. For FY2022, the per-acre payment rates were $2.94 per~~
~~acre of entitlement land for Alternative A and $0.42 per acre of entitlement land for Alternative B.~~
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to a deduction for prior-year payments. For FY2023, the per-acre payment rates were $3.15 per acre of entitlement land for Alternative A and $0.45 per acre of entitlement land for Alternative B. For calculations under Alternative A, DOI deducts certain prior-year payments. Qualifying prior-For calculations under Alternative A, DOI deducts certain prior-year payments. Qualifying prior-
year payments are those payments from the federal payment programs listed in statute:year payments are those payments from the federal payment programs listed in statute:28
30 • the Act of June 20, 1910 (ch. 310, 36 Stat. 557); the Act of June 20, 1910 (ch. 310, 36 Stat. 557);
• Section 33 of the Bankhead-Jones Farm Tenant Act (7 U.S.C. §1012); Section 33 of the Bankhead-Jones Farm Tenant Act (7 U.S.C. §1012);
• the Act of May 23, 1908 (16 U.S.C. §500), or the Secure Rural Schools and the Act of May 23, 1908 (16 U.S.C. §500), or the Secure Rural Schools and
Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et seq.); Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et seq.);29
31 • Section 5 of the Act of June 22, 1948 (16 U.S.C. §§577g–577g-1); Section 5 of the Act of June 22, 1948 (16 U.S.C. §§577g–577g-1);
• Section 401(c)(2) of the Act of June 15, 1935 (16 U.S.C. §715s(c)(2)); Section 401(c)(2) of the Act of June 15, 1935 (16 U.S.C. §715s(c)(2));
• Section 17 of the Federal Power Act (16 U.S.C. §810); Section 17 of the Federal Power Act (16 U.S.C. §810);
• Section 35 of the Act of February 25, 1920 (30 U.S.C. §191); Section 35 of the Act of February 25, 1920 (30 U.S.C. §191);
• Section 6 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. §355); Section 6 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. §355);
• Section 3 of the Act of July 31, 1947 (30 U.S.C. §603); and Section 3 of the Act of July 31, 1947 (30 U.S.C. §603); and
• Section 10 of the Act of June 28, 1934 (known as the Taylor Grazing Act) (43 Section 10 of the Act of June 28, 1934 (known as the Taylor Grazing Act) (43
U.S.C. §315i). U.S.C. §315i).
However, if a state has a However, if a state has a pass-through law that requires some or all of these prior-year payments law that requires some or all of these prior-year payments
to be paid directly to a sub-county recipient (e.g., a school district), the amount passed through to be paid directly to a sub-county recipient (e.g., a school district), the amount passed through
from these payments is not deducted from subsequent PILT payments in the following year.from these payments is not deducted from subsequent PILT payments in the following year.3032
As noted, Alternative B is calculated without deducting prior-year payments, but it uses a lower As noted, Alternative B is calculated without deducting prior-year payments, but it uses a lower
per-acre payment rate. per-acre payment rate.
Once each alternative is calculated, the greater of the two is the Section 6902 authorized payment Once each alternative is calculated, the greater of the two is the Section 6902 authorized payment
for the county for the county (Figure 2, Box D). However, if the per-acre calculated Section 6902 authorized ox D). However, if the per-acre calculated Section 6902 authorized
payment is greater than the population-based ceiling, then the population-based ceiling replaces payment is greater than the population-based ceiling, then the population-based ceiling replaces
the per-acre calculated amount.the per-acre calculated amount.3133
The Section 6902 authorized payments are calculated for every county, and this amount is added The Section 6902 authorized payments are calculated for every county, and this amount is added
to the Section 6904 and Section 6905 authorized payments (for more information on Sections to the Section 6904 and Section 6905 authorized payments (for more information on Sections
6904 and 6905, see 6904 and 6905, see “PILT Payments Under Sections 6904 and 6905”). This summed amount is ). This summed amount is
the full statutory calculation for a given fiscal year the full statutory calculation for a given fiscal year (Figure 2, Box Box E). DOI compares the full E). DOI compares the full
statutory calculation with the amount appropriated and available for PILT payments to determine statutory calculation with the amount appropriated and available for PILT payments to determine
whether Congress has provided whether Congress has provided ~~adequate~~ funding to cover the full statutory calculatifunding to cover the full statutory calculation (Figure 2,
~~Box F).32 If sufficient funding is available, each county receives its authorized amount;33 if~~

28Box 30 31 U.S.C. §6903(a)(1). 31 U.S.C. §6903(a)(1).
2931 For more information, see CRS Report R41303, For more information, see CRS Report R41303, The Secure Rural Schools and Community Self-Determination Act:
Background and Issues. .
3032 National Summary ~~FY2022~~FY2023, p. 10. According to DOI , p. 10. According to DOI
Only the amount of Federal land payments actually received by units of government in the prior fiscal year is Only the amount of Federal land payments actually received by units of government in the prior fiscal year is
deducted. If a unit receives a Federal land payment but is required by State law to pass all or part of it to 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 to any other single or special purpose district, financially and politically independent school districts, or to any other single or special purpose district,
payments are considered to have not been received by the unit of local government and are not deducted from payments are considered to have not been received by the unit of local government and are not deducted from
the Section 6902 payment. the Section 6902 payment.
3133 If the population-based ceiling replaces the per-acre calculation under Alternative A, prior-year payments are then If the population-based ceiling replaces the per-acre calculation under Alternative A, prior-year payments are then
deducted from the population-based ceiling to determine the final amount for Alternative A. deducted from the population-based ceiling to determine the final amount for Alternative A.
~~32 Congress provides funding for PILT through either discretionary or mandatory appropriations, or both, in any given~~
~~year. See “PILT Authorizations and Appropriations” for more information.~~
~~33 Payments may be subject to any additional provisions included in appropriations language, such as minimum~~
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~~funding is~~ F).34 If sufficient funding is available, each county receives its authorized amount;35 if funding is insufficient, each county receives a prorated payment that is proportional to its insufficient, each county receives a prorated payment that is proportional to its
authorized authorized ~~payment~~ payment (Figure 2, Box G).ox G).3436
The full statutory calculation and the amount available for PILT payments determine proration. The full statutory calculation and the amount available for PILT payments determine proration.
Although there are additional adjustments made in the PILT proration calculation resulting from Although there are additional adjustments made in the PILT proration calculation resulting from
small idiosyncrasies related to the requirements for PILT payments—namely, the requirement of a small idiosyncrasies related to the requirements for PILT payments—namely, the requirement of a
minimum threshold of $100 for PILT minimum threshold of $100 for PILT ~~payments35~~payments37—the proration is fundamentally the ratio of the —the proration is fundamentally the ratio of the
appropriated funding available for PILT payments to the full statutory calculation: appropriated funding available for PILT payments to the full statutory calculation:

As a result, counties may receive less than their authorized PILT payment in years when As a result, counties may receive less than their authorized PILT payment in years when
appropriated funding is insufficient to cover the full statutory calculation. This scenario can occur appropriated funding is insufficient to cover the full statutory calculation. This scenario can occur
even when total PILT appropriations match the full statutory calculation; this has been the case in even when total PILT appropriations match the full statutory calculation; this has been the case in
years with mandatory appropriations, when part of the appropriated amount is set aside for a use years with mandatory appropriations, when part of the appropriated amount is set aside for a use
other than county payments. For example, laws providing appropriations for PILT routinely have other than county payments. For example, laws providing appropriations for PILT routinely have
allowed DOI to retain a small portion of PILT appropriations for administrative expenses.allowed DOI to retain a small portion of PILT appropriations for administrative expenses.3638
PILT Payments Under Sections 6904 and 6905
Section 6904 and Section 6905 payments account for a small fraction of total PILT payments.Section 6904 and Section 6905 payments account for a small fraction of total PILT payments.3739 In In
~~FY2022~~FY2023, these payments , these payments ~~were made to 128 counties and~~ accounted for 0.accounted for 0.1108% of PILT payments % of PILT payments
~~($629,856 of $549.4~~($481,628 of $578.8 million in total payments made). million in total payments made).3840 When a county receives Section 6904 When a county receives Section 6904
and/or Section 6905 payments, it is to disburse the funds to governmental units and school and/or Section 6905 payments, it is to disburse the funds to governmental units and school
districts within the county in proportion to the amount of property taxes lost because of the districts within the county in proportion to the amount of property taxes lost because of the
federal ownership of the entitled lands, as enumerated under these sections.federal ownership of the entitled lands, as enumerated under these sections.3941 The funds The funds generally may be may be
~~used for any governmental purpose.~~
~~Section 6904 Payments~~
~~Section 6904 authorizes the Secretary of the Interior to make payments to counties that contain~~
~~certain lands, or interests in lands, that are part of the National Park System and National Forest~~

used for any governmental purpose, as noted.42 34 Congress provides funding for PILT through either discretionary or mandatory appropriations, or both, in any given year. See “PILT Authorizations and Appropriations” for more information. 35 Payments may be subject to any additional provisions included in appropriations language, such as minimum payment thresholds or adjustments for under- or overpayments in previous years. PILT provisions in appropriations payment thresholds or adjustments for under- or overpayments in previous years. PILT provisions in appropriations
laws generally have required a minimum payment threshold of $100. For example, the laws generally have required a minimum payment threshold of $100. For example, the ~~FY2022~~FY2023 appropriations act appropriations act
included a $100 minimum payment clause (P.L. 117-included a $100 minimum payment clause (P.L. 117-~~103~~328, Division G, Title I). 36~~, Division G, Title I). In FY2022, less than 200 counties had~~
~~an authorized payment of less than $100; these counties did not receive payments, per the FY2022 appropriations act.~~
34 The provision for a prorated payment is not included in the PILT statutory language (31 U.S.C. §§6901-6907), but it The provision for a prorated payment is not included in the PILT statutory language (31 U.S.C. §§6901-6907), but it
has been included in certain appropriations laws for PILT.has been included in certain appropriations laws for PILT.
35 See, for example, P.L. 117-328, Division G, Title I. 37 The requirement of a minimum threshold of $100 for PILT payments The requirement of a minimum threshold of $100 for PILT payments ~~is routinely~~typically is included in appropriations included in appropriations
language related to PILT (e.g., for language related to PILT (e.g., for ~~FY2022, Title I of Division G in P.L. 117-103) and~~FY2023, P.L. 117-328, Division G, Title I). It also is in regulation (43 C.F.R. also is in regulation (43 C.F.R.
§44.51). §44.51).
3638 For example, DOI is allowed to retain up to $400,000 of the appropriations for PILT for administrative expenses in For example, DOI is allowed to retain up to $400,000 of the appropriations for PILT for administrative expenses in
FY2023 (FY2023 (~~Title I of Division G in P.L. 117-328).~~
37P.L. 117-328, Division G, Title I). 39 31 U.S.C. §§6904 and 6905. 31 U.S.C. §§6904 and 6905.
3840 National Summary ~~FY2022~~FY2023, p. 8. This source reports §6904 and §6905 payments together, and further disaggregation , p. 8. This source reports §6904 and §6905 payments together, and further disaggregation
is not possible from the information provided. is not possible from the information provided.
3941 43 C.F.R. §44.50. 43 C.F.R. §44.50.
42 31 U.S.C. §6904(b) and §6905(a) and (b)(3). Congressional Research Service Congressional Research Service
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Section 6904 Payments Section 6904 authorizes the Secretary of the Interior to make payments to counties that contain certain lands, or interests in lands, that are part of the National Park System and National Forest Wilderness Areas.43~~Wilderness Areas.40~~ However, Section 6904 specifies that these lands, or interests, are eligible However, Section 6904 specifies that these lands, or interests, are eligible
only if (1) they have been acquired by the U.S. government for addition to these systems and (2) only if (1) they have been acquired by the U.S. government for addition to these systems and (2)
they were subject to local property taxes in the five-year period prior to this acquisition.they were subject to local property taxes in the five-year period prior to this acquisition.4144
Payment under Section 6904 is calculated as 1% of the fair market value of the land at the time it Payment under Section 6904 is calculated as 1% of the fair market value of the land at the time it
was acquired, not to exceed the amount of property taxes levied on the property during the fiscal was acquired, not to exceed the amount of property taxes levied on the property during the fiscal
year prior to its acquisition.year prior to its acquisition.4245 Further, Section 6904 payments are made annually only for the five Further, Section 6904 payments are made annually only for the five
fiscal years after the land, or interest, is acquired by the U.S. government, unless otherwise fiscal years after the land, or interest, is acquired by the U.S. government, unless otherwise
mandated by law. mandated by law.
Section 6905 Payments
Section 6905 authorizes the Secretary of the Interior to make payments to counties that contain Section 6905 authorizes the Secretary of the Interior to make payments to counties that contain
lands, or interests in lands, that are part of the Redwood National Park and are owned by the U.S. lands, or interests in lands, that are part of the Redwood National Park and are owned by the U.S.
government or that are acquired by the U.S. government in the Lake Tahoe Basin under the Act of government or that are acquired by the U.S. government in the Lake Tahoe Basin under the Act of
December 23, 1980.December 23, 1980.4346 Section 6905 payments are paid at a rate of (1) 1% of the fair market value Section 6905 payments are paid at a rate of (1) 1% of the fair market value
of the acquired land or interests or (2) the amount of taxes levied on the land in the year prior to of the acquired land or interests or (2) the amount of taxes levied on the land in the year prior to
acquisition, whichever is less. Payments on these lands continue for five years or until payments acquisition, whichever is less. Payments on these lands continue for five years or until payments
have totaled 5% of the fair market value of the land, whichever is later.have totaled 5% of the fair market value of the land, whichever is later.4447
Issues for Congress
PILT is of perennial interest to many PILT is of perennial interest to many inMembers of Congress and to stakeholders throughout the country. Congress and to stakeholders throughout the country.
~~County~~In particular, county governments are governments are ~~particularly~~ interested in the degree of certainty of PILT interested in the degree of certainty of PILT ~~payments, as~~
~~well as in~~payments and how payments are calculated, because many consider PILT payments to be an integral how payments are calculated, because many consider PILT payments to be an integral
part of their annual budgets. Congressional and stakeholder interests include questions of how part of their annual budgets. Congressional and stakeholder interests include questions of how
PILT should be funded, what lands should be included as entitlement lands, and how authorized PILT should be funded, what lands should be included as entitlement lands, and how authorized
payment levels are calculated under PILT, among others. payment levels are calculated under PILT, among others.
Congress annually addresses questions of how funding should be provided to PILT. Congress has Congress annually addresses questions of how funding should be provided to PILT. Congress has
funded PILT through both funded PILT through both ~~mandatory and discretionary~~discretionary and mandatory appropriations (see appropriations (see “PILT Authorizations
and Appropriations”). PILT funding typically has been provided through the discretionary . PILT funding typically has been provided through the discretionary
appropriations process for one fiscal year at a time, even when the funding has been considered appropriations process for one fiscal year at a time, even when the funding has been considered
mandatory spending. Although PILT has mandatory spending. Although PILT has ~~consistently~~ received funding received funding each year since its enactment, the since its enactment, the
appropriations process has created uncertainty among some stakeholders about the level of annual appropriations process has created uncertainty among some stakeholders about the level of annual
~~funding. Stakeholders have expressed a desire for more certainty in terms of both the guarantee of~~
~~funding and the amount of funding (i.e., the full statutory calculation).45~~

40 43 31 U.S.C. §6904. For more information on the National Park System, see CRS Report R41816, 31 U.S.C. §6904. For more information on the National Park System, see CRS Report R41816, National Park
System: What Do the Different Park Titles Signify?. For more information on wilderness areas, see CRS Report . For more information on wilderness areas, see CRS Report
RL31447, RL31447, Wilderness: Overview, Management, and Statistics. .
4144 31 U.S.C. §6904(a). 31 U.S.C. §6904(a).
4245 31 U.S.C. §6904(c). 31 U.S.C. §6904(c).
4346 31 U.S.C. §6905. The Act of December 23, 1980, is P.L. 96-586. 31 U.S.C. §6905. The Act of December 23, 1980, is P.L. 96-586.
4447 43 C.F.R. §44.40. Payments may extend beyond five years when taxes levied in the year prior to acquisition account 43 C.F.R. §44.40. Payments may extend beyond five years when taxes levied in the year prior to acquisition account
for less than 1% of the fair market value of the acquired land. However, any portion of a payment not made because for less than 1% of the fair market value of the acquired land. However, any portion of a payment not made because
Congress did not appropriate sufficient funds is not deferred to later payments. Congress did not appropriate sufficient funds is not deferred to later payments.
~~45 National Association of Counties (NACo),~~ ~~Provide Full Mandatory Funding for the~~Congressional Research Service 13 link to page 9 The Payments in Lieu of Taxes
~~(PILT) Program, February 1, 2023, at https://www.naco.org/resources/provide-full-mandatory-funding-payments-lieu-~~
~~taxes-pilt-program.~~
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(PILT) Program: An Overview funding. Stakeholders have expressed a desire for more certainty in terms of both the guarantee of funding and the amount of funding (i.e., the full statutory calculation).48 Members of Congress typically contemplate the implications and tradeoffs of discretionary versus Members of Congress typically contemplate the implications and tradeoffs of discretionary versus
mandatory spending and may have different views than the counties that receive PILT payments. mandatory spending and may have different views than the counties that receive PILT payments.
Congress, for example, may weigh the flexibility of having discretion to review and fund PILT on Congress, for example, may weigh the flexibility of having discretion to review and fund PILT on
an annual basis through the appropriations process against the certainty of funding for specific an annual basis through the appropriations process against the certainty of funding for specific
activities that accompany mandatory appropriations.activities that accompany mandatory appropriations.~~46 Several~~49 In recent Congresses, bills have been introduced to bills have been introduced to
amend how PILT is funded. For example, legislation was introduced in the 116th Congress that amend how PILT is funded. For example, legislation was introduced in the 116th Congress that
would have required mandatory funding for PILT, either for a set period of time (e.g., 10 would have required mandatory funding for PILT, either for a set period of time (e.g., 10
additional years) or indefinitely.additional years) or indefinitely.4750
The question of which lands should be eligible for PILT payments is also of interest to many The question of which lands should be eligible for PILT payments is also of interest to many
Members and stakeholders. In law, entitlement lands are restricted to the listed federal land types Members and stakeholders. In law, entitlement lands are restricted to the listed federal land types
(see (see “Entitlement Lands”). However, this definition does not fully encompass the types of lands . However, this definition does not fully encompass the types of lands
that are held by the federal government, nor does it account for the full suite of lands that are that are held by the federal government, nor does it account for the full suite of lands that are
exempt from state and local taxes. Although counties may receive compensation for some of exempt from state and local taxes. Although counties may receive compensation for some of
these other lands through other federal programs, not all federal lands exempt from taxation are these other lands through other federal programs, not all federal lands exempt from taxation are
covered by a federal compensation programcovered by a federal compensation program~~, which may cause~~. This might contribute to financial hardships for counties financial hardships for counties
that otherwise might receive revenue from that land through taxation. To address this concern, that otherwise might receive revenue from that land through taxation. To address this concern,
some Members of Congress have some Members of Congress have ~~contemplated~~proposed amending the definition of entitlement lands amending the definition of entitlement lands
under PILT. under PILT. ~~For example, past Congresses~~Among other proposals, in past Congresses, Members have introduced legislation that would have amended have introduced legislation that would have amended
PILT by expanding the definition of entitlement land to include PILT by expanding the definition of entitlement land to include
• land “that is held in trust by the United States for the benefit of a federally land “that is held in trust by the United States for the benefit of a federally
recognized Indian tribe or an individual Indian”; recognized Indian tribe or an individual Indian”;48
51 • lands under the jurisdiction of the Department of the Defense, other than those lands under the jurisdiction of the Department of the Defense, other than those
already included in PILT; already included in PILT;49
52 • lands acquired by the federal government for addition to the National Wildlife lands acquired by the federal government for addition to the National Wildlife
Refuge System; Refuge System;5053 and and
• lands administered by the Department of Homeland Security, lands administered by the Department of Homeland Security, 5154 among others. among others.
Amending the definition of entitlement lands could have several implications. Adding acres of Amending the definition of entitlement lands could have several implications. Adding acres of
entitlement lands could increase the authorized amount of payments under PILT for the counties entitlement lands could increase the authorized amount of payments under PILT for the counties
in which those lands are located. Depending how the definition was amended, these additional in which those lands are located. Depending how the definition was amended, these additional
entitlement lands may be eligible for compensation under other federal compensation programs. entitlement lands may be eligible for compensation under other federal compensation programs.
~~This could, in turn,~~In turn, this could further affect PILT payment calculations through the adjustment for prior-year further affect PILT payment calculations through the adjustment for prior-year
payments deducted from Alternative A. payments deducted from Alternative A.

46 48 National Association of Counties (NACo), Provide Full Mandatory Funding for the Payments in Lieu of Taxes (PILT) Program, February 1, 2023, at https://www.naco.org/resources/provide-full-mandatory-funding-payments-lieu-taxes-pilt-program. 49 For more information, see CRS Report R44582, For more information, see CRS Report R44582, Overview of Funding Mechanisms in the Federal Budget Process,
and Selected Examples. .
4750 For example, S. 2480 would have required mandatory PILT funding through FY2029, and H.R. 3043 would have For example, S. 2480 would have required mandatory PILT funding through FY2029, and H.R. 3043 would have
required mandatory PILT funding indefinitely. Both bills were introduced in the 116th Congress. required mandatory PILT funding indefinitely. Both bills were introduced in the 116th Congress.
4851 For example, H.R. 7251 in the 110th Congress. For example, H.R. 7251 in the 110th Congress.
4952 For example, H.R. 4710 in the 113th Congress. For example, H.R. 4710 in the 113th Congress.
5053 For example, S. 2626 in the 113th Congress. For example, S. 2626 in the 113th Congress.
5154 For example, H.R. 543 in the 112th Congress. For example, H.R. 543 in the 112th Congress.
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The authorized payment level under Section 6902, which accounts for nearly all payments under The authorized payment level under Section 6902, which accounts for nearly all payments under
PILT, is calculated pursuant to the statutory requirements. This section has remained largely PILT, is calculated pursuant to the statutory requirements. This section has remained largely
unchanged since the requirement to adjust for inflation was added in 1994, among other unchanged since the requirement to adjust for inflation was added in 1994, among other
changes.changes.5255 The inflation adjustment clause has resulted in increasing payment and ceiling rates The inflation adjustment clause has resulted in increasing payment and ceiling rates
since that time.since that time.53 Congress Congress ~~routinely considers~~at times has considered whether the current formula is the best means of whether the current formula is the best means of
calculating payments under PILT or whether the formula should be amended. For example, in the calculating payments under PILT or whether the formula should be amended. For example, in the
116th Congress, bills were introduced that would have adjusted the payment structure for counties 116th Congress, bills were introduced that would have adjusted the payment structure for counties
with a population of less than 5,000.with a population of less than 5,000.5456 This adjustment would have had implications for how This adjustment would have had implications for how ~~the~~
population population ~~ceiling or entitlement land acreage~~ would be incorporated into calculating PILT would be incorporated into calculating PILT
~~payments and whether PILT payments were provided in an equitable manner~~payments. In the 117th . In the 117th
Congress, bills were introduced that would have directed the SecretaryCongress, bills were introduced that would have directed the Secretary of the Interior to develop, study, and to develop, study, and
report on a modeling tool to calculate tax equivalency payments.report on a modeling tool to calculate tax equivalency payments.5557
In addition to the above issues, Congress may consider other issues related to PILT and how the In addition to the above issues, Congress may consider other issues related to PILT and how the
program fits into the landscape of federal programs that compensate for the presence of tax-program fits into the landscape of federal programs that compensate for the presence of tax-
exempt federal lands.exempt federal lands.5658

Author Information

~~Katie Hoover~~Carol Hardy Vincent

Specialist in Natural Resources Policy Specialist in Natural Resources Policy

Acknowledgments Katie Hoover, former CRS Specialist in Natural Resources, was the previous author
~~R. Eliot Crafton, who is no longer with CRS, wrote the original version of this report.~~

~~52 P.L. 103-397 amended 31 U.S.C. §6903 in several ways. Since then, §6903 has been amended once; P.L. 106-393~~
~~amended the definition of payment law at 31 U.S.C. §6903(a)(1)(C). That amendment added the Secure Rural Schools~~
~~and Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et seq.) to the list of payment laws, which are~~
~~included in determining prior-year payments.~~
~~53 P.L. 103-397 added the requirement to adjust for inflation.~~
~~54 For example, S. 2108 and H.R. 3716 in the 116th Congress.~~
~~55 For example, S. 1008 and H.R. 2755 in the 117th Congress.~~
~~56 For more discussion on these issues, see CRS Report R42439,~~ ~~Compensating State and Local Governments for the~~
~~Tax-Exempt Status of Federal Lands: What Is Fair and Consistent?~~.
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~~Disclaimer~~
~~This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan~~
~~shared staff to congressional committees and Members of Congress. It operates solely at the behest of and~~
~~under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other~~
~~than public understanding of information that has been provided by CRS to Members of Congress in~~
~~connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not~~
~~subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in~~
~~its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or~~
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~~Congressional Research Service~~
~~R46260 · VERSION 10 · UPDATED~~
16 of this report. Disclaimer This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material. 55 P.L. 103-397 amended 31 U.S.C. §6903 in several ways, including to add a requirement to adjust for inflation. Since then, §6903 has been amended once. Specifically, P.L. 106-393 amended the definition of payment law at 31 U.S.C. §6903(a)(1)(C) to add the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. §§7101 et seq.) to the list of payment laws, which are included in determining prior-year payments. 56 For example, S. 2108 and H.R. 3716 in the 116th Congress. 57 For example, S. 1008 and H.R. 2755 in the 117th Congress. 58 For more discussion on these issues, see CRS Report R42439, Compensating State and Local Governments for the Tax-Exempt Status of Federal Lands: What Is Fair and Consistent?. Congressional Research Service R46260 · VERSION 14 · UPDATED 15