Thursday, January 17, 2013

Hall: PILOTs - Congress's Flawed Solution to Burden of Federal Land Ownership

Dayton L. Hall (Washburn, 2013 JD Candidate) has posted Payments in Lieu of Taxes:  Congress's Flawed Solution to the Burden of Federal Land Ownership on Counties to SSRN.  Here is the abstract:

The federal government makes Payments in Lieu of Taxes (“PILT”) to local governments to help ease the tax burden of federal ownership of land. Because federally owned land is nontaxable, PILT payments are intended to compensate local governments for losses in property taxes due to federal ownership of land within local governments’ boundaries. This Article explains the history and application of the PILT program, analyzes the equity and efficiency of the legislation, concludes that certain aspects of the PILT Act are both inequitable and inefficient, and proposes appropriate revisions. Specifically, this Article concludes and proposes the following: (1) shifting to a tax equivalency payment system based on states’ property valuation laws would be too complicated and inefficient, despite the benefit that such a program might provide more consistent, foreseeable payments to local governments; (2) PILT payments unjustifiably discriminate against less populated counties that contain substantial federal acreage, so the PILT calculation method should be revised to remedy this discrimination; (3) PILT distribution methods creates an inefficient incentive for states to form alternative political subdivisions to maximize payments, so this incentive should be eliminated; and (4) Congress must find a long-term funding solution so that local governments can rely on PILT payments in their long-term planning endeavors.

NAM

http://lawprofessors.typepad.com/nonprofit/2013/01/hall-pilots-congresss-flawed-solution-to-burden-of-federal-land-ownership.html

Publications – Articles | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef017c35ed6d23970b

Listed below are links to weblogs that reference Hall: PILOTs - Congress's Flawed Solution to Burden of Federal Land Ownership:

Comments

Post a comment