1     
PAYMENT IN LIEU OF TAXES FUNDS FOR COUNTIES

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lincoln Fillmore

5     
House Sponsor: Keven J. Stratton

6     

7     LONG TITLE
8     Committee Note:
9          The Federalism Commission recommended this bill.
10               Legislative Vote:     6 voting for     0 voting against     3 absent
11     General Description:
12          This bill creates the Federal Lands Payment in Lieu of Tax restricted account and
13     establishes rules for distribution of certain federal funds.
14     Highlighted Provisions:
15          This bill:
16          ▸     defines terms;
17          ▸     creates the Federal Lands Payment in Lieu of Tax Account;
18          ▸     creates a base distribution level of payments in lieu of tax on federal entitlement
19     lands; and
20          ▸     creates distribution requirements for money received for payments in lieu of tax on
21     federal entitlement lands that exceeds the base distribution level.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     ENACTS:

28          51-9-901, Utah Code Annotated 1953
29          51-9-902, Utah Code Annotated 1953
30          51-9-903, Utah Code Annotated 1953
31          51-9-904, Utah Code Annotated 1953
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 51-9-901 is enacted to read:
35     
Part 9. Federal Lands Payment in Lieu of Tax Act

36          51-9-901. Title.
37          This part is known as the "Federal Lands Payment in Lieu of Tax Act."
38          Section 2. Section 51-9-902 is enacted to read:
39          51-9-902. Definitions.
40          As used in this part:
41          (1) "Entitlement land" means the same as that term is defined in 31 U.S.C. Sec. 6901.
42          (2) "Federal Lands Payment in Lieu of Tax Account" or "account" means the Federal
43     Lands Payment in Lieu of Tax Account created in Section 51-9-903.
44          (3) "Governmental services" means the same as that term is defined in 31 U.S.C. Sec.
45     6901.
46          (4) "Taxing entity" means the same as that term is defined in Section 59-2-102.
47          Section 3. Section 51-9-903 is enacted to read:
48          51-9-903. Creation of the Federal Lands Payment in Lieu of Tax Account.
49          (1) (a) As permitted by 31 U.S.C. Sec. 6907, there is created a restricted account within
50     the General Fund known as the "Federal Lands Payment in Lieu of Tax Account."
51          (b) The account shall consist of:
52          (i) all money credited to the account pursuant to Title 31 U.S.C. Chapter 69, Payment
53     for Entitlement Land;
54          (ii) appropriations from the Legislature;
55          (iii) private grants or contributions; and
56          (iv) interest deposited as described in Subsection (1)(c)(ii).
57          (c) The state treasurer shall:
58          (i) invest the money in the account by following the procedures and requirements of

59     Chapter 7, State Money Management Act; and
60          (ii) deposit all interest or other earnings derived from the account into the account.
61          (2) The Legislature shall appropriate money from the account as provided in Section
62     51-9-904.
63          Section 4. Section 51-9-904 is enacted to read:
64          51-9-904. Distribution of revenue in the Federal Lands Payment in Lieu of Tax
65     Account.
66          (1) As permitted by 31 U.S.C. Sec. 6907, and subject to Subsections (2) and (3), the
67     Legislature shall make appropriations from the account in accordance with Title 31 U.S.C.
68     Chapter 69, Payment for Entitlement Land and as provided in this section.
69          (2) (a) Subject to appropriation, and subject to Subsection (2)(b), the Division of
70     Finance shall, beginning on July 1, 2021, deposit with each county an amount equal to the
71     amount received by each respective county from the Secretary of the Interior for payment for
72     entitlement lands pursuant to Title 31 U.S.C. Chapter 69, Payment for Entitlement Land for the
73     fiscal year ending on June 30, 2020.
74          (b) If the amount distributed by the Secretary of the Interior for a particular year is an
75     amount less than the amount distributed in fiscal year ending on June 30, 2020, the Division of
76     Finance shall:
77          (i) proportionately reduce the amount according to the respective amount for each
78     county as calculated by the Secretary of the Interior; and
79          (ii) distribute to each county the amount reduced according to Subsection (2)(b)(i).
80          (c) A county may use money distributed pursuant to this Subsection (2) for any purpose
81     that meets the definition of governmental services.
82          (3) (a) For any amount in the account that exceeds the amount distributed under
83     Subsection (2), the Division of Finance shall distribute the funds to each county in the same
84     proportion as the funds distributed pursuant to Subsection (2).
85          (b) A county shall distribute money received pursuant to Subsection (3)(a) to each
86     taxing entity within the county in the same proportion as property tax revenue is distributed
87     among taxing entities pursuant to Title 59, Chapter 2, Property Tax Act and existing local law
88     regarding property tax distribution.