Counties paying for upkeep of tax-exempt federal lands to get $621 million in PILT funds

A view of some of the vast acreage of Big Bend National Park in Brewster County, Texas. (Photo by Kay Bell)

This summer, millions of people will visit national parks, forests, and wilderness areas. While the folks who live in near those sites appreciate the associated increase in the local economy, they also pay a price.

Land owned by the federal government is generally not subject to taxation by state or local governments. But those jurisdictions still cover services for the tax-exempt U.S. acreage within their borders. Much of the expense is borne by counties that pay for road upkeep, police and fire protection, and other services on the federal property.

There is, however, a program to help Uncle Sam pay back local governments some of those lost tax dollars.

The Payment in Lieu of Taxes, or PILT, program began in 1977. Over the last 47 years, the Department of the Interior, which distributes the funds, has made nearly $12 billion in PILT payments to 49 States (all but Rhode Island), the District of Columbia, Puerto Rico, Guam, and the Virgin Islands.

For fiscal year (FY) 2024, more than 1,900 state and local governments around the country will receive a total of $621.2 million in PILT funding. That’s an increase of almost $42.5 million over what was paid in fiscal 2023.

 “PILT payments help local governments carry out vital services, such as firefighting and police protection, construction of public schools and roads, and search-and-rescue operations. We are grateful for our ongoing partnerships with local jurisdictions across the country who help the Interior Department fulfill our mission on behalf of the American public,” said  Principal Deputy Assistant Secretary for Policy, Management and Budget Joan Mooney in announcing the latest PILT disbursements. 

PILT payment calculations: Payments are calculated based on the number of acres of federal land within each county or jurisdiction and the population of that county or jurisdiction. 

The Department of the Interior also collects more than $22.2 billion in revenue annually from commercial activities on public lands. A portion of those revenues is shared with states and counties. The balance is deposited into the U.S. Treasury, which in turn pays for a broad array of federal activities, including PILT funding.

The table below show how much PILT funds were paid in FY23 and how much are slated for each eligible state in FY24.
          

      
Big Bend nets Texas a big PILT payment: You also can check the Interior Department’s interactive webpage to see how much PILT money your state and county received last year and is due in 2024.

Of course, I looked at the Lone Star State counties getting funds this year. I was not surprised to find that the largest PILT headed to Texas — $1,547,289 — goes to Brewster Country. That’s the jurisdiction in which Big Bend National Park’s 801,163 acres are located.

Individual payments may vary from year to year due to changes in acreage data, which are updated annually by the federal agency administering the land; prior-year federal revenue-sharing payments reported annually by the governor of each state; and inflationary adjustments using the Consumer Price Index and population data, which are updated using information from the U.S. Census Bureau. 

You also might find these items of interest:

• Include taxes in your travel budget
• 7 states hiked fuel tax rates on July 1
• Short-term home rentals could provide tax-free income

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