Evaluating Tax Revenue Foregone from Federally Controlled Lands
Foregone property tax evaluation procedures.
• As used in this section:
(a)(i) “Federally controlled land” means any land within the exterior boundaries of the state that is controlled by the United States government for the entire taxable year.
(ii) “Federally controlled land” does not include:
• A military installation;
• A federal enclave as described in the United States Constitution, Article I, Section 8, clause 17; or
• Land owned by an Indian tribe as described in 18 U.S.C. Sec. 1151.
(b)(i)“Payments in lieu of tax” means payments made by the federal government to a county, municipality or school district of the state.
(ii) “Payments in lieu of tax” includes a payment under:
• The in lieu of property taxes program, 31 U.S.C. Sec. 6901, et seq., commonly referred to as PILT; and
• The impact aid program, 20 U.S.C. Sec. 7701, et seq.
(2)(a) The commission shall hold a hearing regarding the impact on the state from the failure of the federal government to make payments in lieu of tax that are equivalent to the property tax revenue that the state would generate but for federally controlled land.
(b) The commission shall invite and accept testimony on the information described in the relevant Subsection and the impact on the ability and the duty of the state to fund education and to protect and promote the health, safety and welfare of the state, the state’s political subdivisions and the residents of the state from the following:
(i) Representatives from:
(A) The office of each United States senator or representative elected from the state;
(B) Any federal government entity administering the payments in lieu of tax;
(C) The [Legislative Management Committee]; (D)The Office of the Governor;
(E) The Office of the Attorney General;
(F) The State Tax Commission;
(G) The [Public Lands Policy Coordinating Office] or relevant entity;
(H) The school districts;
(I) The association of school districts;
(J) The superintendents’ association;
(K) The charter schools;
(L) School community councils;
(M) The Association of counties;
(N) The municipalities; and
(O) Nonpartisan entities serving state governments;
(ii) Other states’ officials or agencies; and (iii)Other interested individuals or entities.
(3) In accordance with this part, the commission may engage each United States senator or representative elected from the state in coordinating with the federal government to secure payments in lieu of tax that are equivalent to the property tax revenue the state would generate but for federally controlled land.
(4) The commission shall communicate the information received during the hearing described in the relevant Subsection and any action taken under the relevant Subsection to the individuals and entities described in the relevant Subsection.
If approved by two-thirds of all the members elected to each house, this bill takes effect upon approval by the governor, or the day following the constitutional time limit of the [INSERT STATE] Constitution.