1     
CONCURRENT RESOLUTION ON FEDERAL GOVERNMENT

2     
PAYMENTS IN LIEU OF TAXES

3     
2020 SIXTH SPECIAL SESSION

4     
STATE OF UTAH

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Chief Sponsor: Keven J. Stratton

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Senate Sponsor: ____________

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8     LONG TITLE
9     General Description:
10          This concurrent resolution addresses federal government payments in lieu of taxes.
11     Highlighted Provisions:
12          This resolution:
13          ▸     identifies $534 million as the minimum current annual property tax equivalency for all
14     federal lands in the state of Utah, under the lowest, fair property tax equivalency
15     scenario, compared to the less than $41 million that the state received for 2019;
16          ▸     addresses the history of federal government payments in lieu of taxes (PILT),
17     expresses appreciation for all PILT money paid to the state, but addresses the
18     inadequacy of those payments;
19          ▸     refers to new technology that enables a more accurate determination of the property
20     tax equivalency value of all federal lands in the state;
21          ▸     calls on Congress and the President to fund PILT payments to Utah for 2020 at the
22     full property tax equivalency amount of $534 million at a minimum;
23          ▸     calls upon federal officials to coordinate expeditiously with Utah and other willing
24     states to ensure that future PILT payments are permanently made on a full property
25     tax equivalency basis;
26          ▸     calls on federal officials to collaborate with Utah's congressional delegation and state
27     and local officials to allow greater state management and local control of the federal

28     land within Utah municipalities in order to stabilize fluctuating economic conditions;
29          ▸     calls upon local, state, and national leaders and others to come together to secure the
30     full and fair property tax equivalency of PILT for all western states and the nation;
31     and
32          ▸     directs that a copy of this resolution be sent to federal, state, and local officials and
33     others.
34     Special Clauses:
35          None
36     

37     Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
38          WHEREAS, $534 million is the current annual property tax equivalency for all federal
39     lands in the state of Utah, under the lowest, fair property tax equivalency scenario, compared to
40     the less than $41 million that the state received for 2019;
41          WHEREAS, technology now exists to more accurately determine the property tax
42     equivalency value of all federal lands in the state;
43          WHEREAS, when the federal government changed its public lands policy in 1976 from
44     one of disposal to one of retention, Congress agreed to make payments in lieu of taxes (PILT) "to
45     make up for the presence of nontaxable land" (Congressional Research Service) on a "tax
46     equivalency" (USDA) basis;
47          WHEREAS, tax equivalency means the amount "that would have been received by these
48     jurisdictions if the federal lands were privately owned" (Government Accountability Office);
49          WHEREAS, the federal commitment to pay the property tax equivalency for PILT is vital
50     for Utah's children and communities and is particularly important during periods of fluctuating
51     economic conditions;
52          WHEREAS, Utah appreciates every dollar of PILT money received, yet the harsh reality
53     is that current PILT is less than 8% of the lowest, fair property tax equivalency value, resulting in
54     exponentially compounding depressive impacts on funding for education and essential government
55     services, including first responder services, the construction of roads, schools, and other
56     infrastructure, and search and rescue services;
57          WHEREAS, the current fluctuating economic conditions have intensified this structural
58     burden borne by Utah citizens and communities to fund education and all other government

59     services with less than 21% taxable land;
60          WHEREAS, the minimum current annual amount required to satisfy the property tax
61     equivalency commitment for PILT to Utah's citizens, communities, and schoolchildren is $534
62     million, calculated as follows:
63          a. $131 million is the current property tax equivalency amount for the 217,000 acres of
64     nontaxable U.S. Forest Service (USFS) and Bureau of Land Management (BLM) land entirely
65     within Utah municipal limits;
66          b. $228 million is the current property tax equivalency amount for the 441,000 acres of
67     nontaxable USFS and BLM land within one mile of Utah municipal limits; and
68          c. $175 million is the current property tax equivalency amount for all nontaxable federal
69     lands subject to PILT beyond one mile of Utah municipal limits; and
70          WHEREAS, by unanimous vote, the Utah Legislature, with the Governor concurring,
71     charged the Utah Federalism Commission with overseeing the development of a federal land
72     valuation model, together with the review and analysis of applicable studies and materials
73     pertaining to the property tax equivalency of PILT, which together led to the findings and
74     conclusions set forth in this resolution:
75          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
76     Governor concurring therein, calls upon the Congress of the United States and the President of
77     the United States to pay at a minimum $534 million as the payment in lieu of taxes for 2020 on a
78     full property tax equivalency basis, as committed at the inception of the PILT program, calculated
79     as follows:
80          a. with respect to the more than 217,000 acres of nontaxable federally managed lands
81     located inside of Utah municipal boundaries, the property tax equivalency amount of $131 million;
82          b. with respect to the more than 441,000 acres of nontaxable federally managed lands
83     that are within one mile of Utah municipal boundaries, the property tax equivalency amount of
84     $228 million; and
85          c. with respect to the balance of the nearly 33 million acres of nontaxable federally
86     managed lands in the state of Utah, the property tax equivalency amount of $175 million.
87          BE IT FURTHER RESOLVED that the Legislature of the state of Utah, the Governor
88     concurring therein, calls upon the Congress of the United States and the President of the United
89     States to coordinate expeditiously and in good faith with Utah and other willing states to adopt

90     such laws, regulations, and policies as are necessary to ensure that all future PILT payments are
91     permanently made on a full property tax equivalency basis.
92          BE IT FURTHER RESOLVED that the Legislature of the state of Utah, the Governor
93     concurring therein, calls upon the Congress of the United States, the President of the United
94     States, and the relevant federal administrative agencies, in light of the current fluctuating
95     economic conditions Utah faces, to collaborate in a timely and good faith manner with Utah's
96     congressional delegation and with state and local leaders to allow greater state management and
97     local control of the 217,000 acres of federal land within Utah municipal limits, which amount to a
98     small fraction of the 33 million acres of nontaxable federally managed lands within the state of
99     Utah, for the purpose of stabilizing fluctuating economic conditions.
100          BE IT FURTHER RESOLVED that the Legislature of the state of Utah, the Governor
101     concurring therein, calls upon all people of good will and local, state, and national leaders to come
102     together to secure the full and fair property tax equivalency of PILT for our children and our
103     communities throughout all western states and the entire nation.
104          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the President of
105     the United States, the Vice President of the United States, the Majority Leader and Minority
106     Leader of the United States Senate, the Speaker and Minority Leader of the United States House
107     of Representatives, each member of the Utah congressional delegation, the Governors, the Senate
108     Presidents, and Speakers of the House of every state with more than 20% federally controlled
109     lands, the county governing council and executive of every county within those states, and the
110     National Association of Counties and the Western Governors Association.