Senator Ralph Okerlund proposes the following substitute bill:


1     
JOINT RESOLUTION ON FEDERAL GOVERNMENT

2     
PAYMENTS IN LIEU OF TAXES

3     
2020 SIXTH SPECIAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Ralph Okerlund

6     
House Sponsor: Keven J. Stratton

7     

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
30     conditions;
31          ▸     calls upon local, state, and national leaders and others to come together to secure the
32     full and fair property tax equivalency of PILT for all western states and the nation;
33     and
34          ▸     directs that a copy of this resolution be sent to federal, state, and local officials and
35     others.
36     Special Clauses:
37          None
38     

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

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

88     Congress of the United States and the President of the United States to coordinate
89     expeditiously and in good faith with Utah and other willing states to adopt such laws,
90     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 calls upon the
93     Congress of the United States, the President of the United States, and the relevant federal
94     administrative agencies, in light of the current fluctuating economic conditions Utah faces, to
95     collaborate in a timely and good faith manner with Utah's congressional delegation and with
96     state and local leaders to allow greater state management and local control of the 217,000 acres
97     of federal land within Utah municipal limits, which amount to a small fraction of the 33
98     million acres of nontaxable federally managed lands within the state of Utah, for the purpose of
99     stabilizing fluctuating economic conditions.
100          BE IT FURTHER RESOLVED that the Legislature of the state of Utah calls upon all
101     people of good will and local, state, and national leaders to come together to secure the full and
102     fair property tax equivalency of PILT for our children and our communities throughout all
103     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
107     House of Representatives, each member of the Utah congressional delegation, the Governors,
108     Senate Presidents, and Speakers of the House of every state with more than 20% federally
109     controlled lands, the county governing council and executive of every county within those
110     states, and the National Association of Counties and the Western Governors Association.