Idaho Congressman Mike Simpson has joined his Western House colleagues in an effort to fund the Payment in Lieu of Taxes (PILT) program. The Members of Congress sent a letter to Interior Appropriations Subcommittee Chairman Norm Dicks (D-WA) and Ranking Member Todd Tiahrt (R-KS) today. 

The Administration’s proposed budget would cut the PILT program by $34 million from the Fiscal Year 2008 enacted level of $228 million. The purpose of PILT is to establish a level playing field by making up for substantial losses in the tax base of counties with large federal land ownership.

Nearly one out of three acres is in the United States is owned by the federal government. Almost ninety percent of all federal acres are located in the West. Fully funding the PILT program is essential to rural communities.

In part the letter stated, “PILT is not just a ‘handout’ for public lands communities; it is the federal government fulfilling its obligation to the communities that host the Public Lands. Because federal land ownership robs local communities of property tax revenues and revenues associated with private business development, the PILT program was created to help offset a portion of the lost income for local counties. Without these funds, many rural communities would be unable to provide even the most fundamental services to both their residents and the users of the federal lands.”

The letter concluded by thanking the Committee for past support on this issue and recognized budget constraints our nation faces. However, Members requested the Department of Interior’s budget be moved toward fully funding the PILT program