HR-10593-119
Referred to the House Committee on Natural Resources.
Sponsored by Brittany Pettersen (D-CO)
What it does
This bill would amend 31 U.S.C. 6906 by replacing the reference to "fiscal year 2019" with "each fiscal year." That change would permanently authorize the Payment in Lieu of Taxes (PILT) program, which sends federal payments to local governments that contain tax-exempt federal land. It would not change the payment formula; it would remove the need for Congress to act on the program's funding authorization each year.
Who benefits
Counties and local governments, concentrated in western states, that contain large amounts of federal land and lose property tax revenue from it. Residents who rely on county services such as law enforcement, road maintenance, schools, and search-and-rescue that PILT payments help fund. County budget officials who would gain more predictable revenue for planning. Congressional offices and agencies would also spend less time on repeated short-term extensions.
Who is hurt
Federal taxpayers, who would bear a continuing cost without a periodic congressional decision point on the program. Other federal spending priorities that may compete for the same budget funds. Counties with little federal land, which receive little or nothing from the program. Congress itself would lose a recurring chance to revisit and adjust the payment formula. The size of any added cost depends on appropriations decisions and is uncertain.
Supporters argue
Supporters argue that federal land cannot be taxed by counties, yet those counties must still provide roads, emergency response, and other services to residents and visitors. They contend that PILT has relied on short-term extensions and last-minute funding that leave rural county budgets uncertain, and that a permanent authorization would give local governments reliable revenue and end the cycle of lapses.
Opponents argue
Opponents argue that making an authorization permanent removes a regular opportunity for Congress to review whether the payment formula is fair, efficient, and targeted to need. They contend that permanent authorization adds to long-term federal obligations without offsets, and that payments may not reflect the actual cost of services or the economic benefits some counties receive from federal lands.
Constitutional context
Congress's authority rests on the Property Clause (Art. IV, §3, cl. 2) over federal lands and the Spending Clause (Art. I, §8, cl. 1). Federal property is immune from state and local taxation under the Supremacy Clause, as in McCulloch v. Maryland (1819), which is the underlying reason for the payments. The bill raises no other significant constitutional question.
Checks and balances
Congress keeps control through the annual appropriations process, since authorization alone does not fund payments, while the Interior Department administers the payments and loses no new authority.
Historical precedent
Congress created PILT in 1976 and has repeatedly extended or funded it through short-term measures, and the current text is tied to fiscal year 2019.