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JOINT RESOLUTION ON FEDERAL GOVERNMENT

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PAYMENTS IN LIEU OF TAXES

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2020 SIXTH SPECIAL SESSION

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STATE OF UTAH

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Chief Sponsor: Ralph Okerlund

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House Sponsor: Keven J. Stratton

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

29     federal land within Utah municipalities in order to stabilize fluctuating economic conditions;
30          ▸     calls upon local, state, and national leaders and others to come together to secure the
31     full and fair property tax equivalency of PILT for all western states and the nation;
32     and
33          ▸     directs that a copy of this resolution be sent to federal, state, and local officials and
34     others.
35     Special Clauses:
36          None
37     

38     Be it resolved by the Legislature of the state of Utah:
39          WHEREAS, the $41 million that the state received in 2019 as PILT money from the
40     federal government is less than 8% of the current annual property tax equivalency for all
41     federal lands in the state of Utah, under the lowest, fair property tax equivalency scenario;
42          WHEREAS, technology now exists to more accurately determine the property tax
43     equivalency value of all federal lands in the state;
44          WHEREAS, when the federal government changed its public lands policy in 1976 from
45     one of disposal to one of retention, Congress agreed to make payments in lieu of taxes (PILT)
46     "to make up for the presence of nontaxable land" (Congressional Research Service) on a "tax
47     equivalency" (USDA) basis;
48          WHEREAS, tax equivalency means the amount "that would have been received by
49     these jurisdictions if the federal lands were privately owned" (Government Accountability
50     Office);
51          WHEREAS, the federal commitment to pay the property tax equivalency for PILT is
52     vital for Utah's children and communities and is particularly important during periods of
53     fluctuating economic conditions;
54          WHEREAS, Utah appreciates every dollar of PILT money received, yet the harsh
55     reality is that current PILT is less than 8% of the lowest, fair property tax equivalency value,

56     resulting in exponentially compounding depressive impacts on funding for education and
57     essential government services, including first responder services, the construction of roads,
58     schools, and other infrastructure, and search and rescue services;
59          WHEREAS, the current fluctuating economic conditions have intensified this structural
60     burden borne by Utah citizens and communities to fund education and all other government
61     services with less than 21% taxable land;
62          WHEREAS, the minimum current annual amount required to satisfy the property tax
63     equivalency commitment for PILT to Utah's citizens, communities, and schoolchildren should
64     reflect the following realities:
65          a. 217,000 acres of nontaxable U.S. Forest Service (USFS) and Bureau of Land
66     Management (BLM) land are located entirely within Utah municipal limits;
67          b. 441,000 acres of nontaxable USFS and BLM land are located within one mile of
68     Utah municipal limits; and
69          c. the remainder of the approximately 33 million acres of federal land within the state
70     are located beyond one mile of Utah municipal limits; and
71          WHEREAS, by unanimous vote, the Utah Legislature, with the Governor concurring,
72     charged the Utah Federalism Commission with overseeing the development of a federal land
73     valuation model, together with the review and analysis of applicable studies and materials
74     pertaining to the property tax equivalency of PILT, which together led to the findings and
75     conclusions set forth in this resolution:
76          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah calls
77     upon the Congress of the United States and the President of the United States to pay the
78     payment in lieu of taxes (PILT) on a full property tax equivalency basis, as committed at the
79     inception of the PILT program, based on the following realities:
80          a. more than 217,000 acres of nontaxable federally managed lands are located inside of
81     Utah municipal boundaries;
82          b. more than 441,000 acres of nontaxable federally managed lands are located within

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

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