Higher State Land Payments Stalled

A significant hike in state payments to school districts, counties and municipalities "in lieu of taxes" (PILT) moved one step closer to reality recently, as the House passed legislation to triple the amount paid out each year on tax-exempt state forest, game and park lands.

At issue is a potential $370,500 annual windfall to Cameron County's school district, county and local governments.

However, until a funding source is nailed down, local taxing bodies - and, in turn, property owners currently carrying the tax load - will have to wait for relief.

Somewhat reluctantly, State Assemblyman Martin Causer (R-Turtlepoint), who chairs the House Timber Caucus, pushed through an amendment that ties the higher PILT allotments to revenue from legalized slot machines.

That legislation, which passed the House by a 176-19 vote, now returns to the State Senate in its amended version for concurrence. The Senate had voted 49-1 in favor of an earlier version that did not include gambling revenue as the funding source.

It's anyone's guess as to when the higher PILT will become a reality. First, the bill must be approved by the Senate and signed by Gov. Rendell. Then, the state's cut of legalized gambling revenue must begin flowing into the treasury, where there are many demands for this money.

Under the current law, $1.20 is allocated for each acre of land and is divided three ways: 40 cents to the county, 40 cents to the local municipality, and 40 cents to the school district. Under Senate Bill 868, $3.60 would be provided per acre, or $1.20 per acre each for the county, local municipality and school district.

Rep. Causer said and many other lawmakers would have preferred that the higher PILT come from a portion of the revenue derived from timber harvesting on state-owned land.

"They are taking millions out of our area in timber revenue alone, not to mention oil and gas. Our school districts and municipalities really need that revenue," Causer said. "But, there wasn't enough support for that . . . this (gambling revenue) was the compromise that we could get through."

In Cameron County, about 154,000 acres are state-owned. Local governments currently divide $183,600 per year. Under the higher PILT, the checks would total $554,083 annually.

Of the state-owned acres in Cameron County, 130,236 acres are state forest lands, 12,963 acres state game lands and about 10,713 acres are in state parks.