[Congressional Record Volume 145, Number 73 (Wednesday, May 19, 1999)]
[House]
[Pages H3362-H3363]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             PILT PAYMENTS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Montana (Mr. Hill) is recognized for 5 minutes.
  Mr. HILL of Montana. Mr. Speaker, as my colleague knows, I have the 
great honor and great privilege of representing the State of Montana 
here in the House of Representatives.
  Montana is one of the largest districts, both in population and area, 
in the Congress. I represent an area of 148,000 square miles and 
approximately 900,000 people.
  Mr. Speaker, about 30 percent of Montana is owned by the Federal 
Government; and that is about 42\1/2\ thousand square miles, or 27.2 
million square acres. To put that into perspective, Mr. Speaker, the 
Federal lands in Montana is about equivalent to the size of the entire 
State of Kentucky or the entire State of Louisiana, or Mississippi, New 
York, Ohio, Pennsylvania, Tennessee, and Virginia.
  As you colleagues know, Mr. Speaker, State and local governments are 
prohibited from taxing Federal lands. But State and local governments 
are obligated to provide services: law enforcement services, fire 
protection, search and rescue, schools, hospitals, and other emergency 
services.
  The Federal Government compensates local governments really in two 
ways. One, it makes payments to State and local governments in lieu of 
taxes. We call this PILT payments. In addition to that, the Federal 
Government provides for revenue sharing. The receipts and certain 
income from the development of resources go to State and local 
governments. Certain minerals, timber harvest, oil and gas leases, even 
a portion of outfitter fees, 25 percent, go to State and local 
governments.
  But, Mr. Speaker, the PILT payments, the payment in lieu of taxes 
payments, in Montana is about 17 cents per acre of Federal land. 
Private land in Montana, on average, produces revenues to State and 
local governments of about $1.48. So the PILT payments are not much 
more than 10 percent of what private taxes would produce.
  In 1995, the Congress authorized the first increase in PILT payments 
in over 20 years. However, Congress has failed to appropriate the full 
level of PILT payments authorized and the Clinton administration has 
never requested the full level of funding.
  But even more troubling is the Clinton administration has been 
locking up the public lands by dramatic reductions in timber harvest, 
withdraw of mineral districts, the shutting down of oil and gas 
expiration, and the closing of public lands for recreation and for 
tourism, and that has further reduced the revenues and income to State 
and local government.
  More troubling than that even, the Clinton administration recently 
proposed the ending of revenue sharing arrangements altogether. Mr. 
Speaker, this proposal has been opposed by local governments and it has 
been opposed by the Montana legislature.
  Mr. Speaker, what this resolution says is that Montana local 
governments, Montana State government opposes the Clinton 
administration's policies of closing down the public lands and failure 
to fulfill its obligations under PILT payments. We have to restore 
resource development, Mr. Speaker, and we have to fully fund the PILT 
payments.
  Mr. Speaker, I include for the Record a copy of the resolution passed 
with 119 votes in the Montana 1998 legislature.

                                        Montana State Capitol,

                                       Helena, MT, March 31, 1999.
     Hon. Rick Hill,
     U.S. House of Representatives, Washington DC.
       Dear Representative Hill: On behalf of the State of Montana 
     it is my honor and duty to send you the attached copy of 
     House Joint Resolution 19 for your information.
       House Joint Resolution 19 is urging the full funding of 
     payments in lieu of taxes on federal land in Montana, the 
     proper harvest of the allowable sale quota for timber, and a 
     renewal of the federal governments' compact with state and 
     local governments to contribute a fair share of taxes on 
     federal land in Montana.
       On behalf of the Speaker of the House, the President of the 
     Senate and all of the members of these esteemed bodies, I 
     thank you for your consideration of this resolution.
           Sincerely,
                                                      Mike Cooney,
                                               Secretary of State.
       Enclosure.

 A Joint Resolution of the Senate and the House of Representatives of 
  the State of Montana Urging the Full Funding of Payments in Lieu of 
 Taxes on Federal Land in Montana, the Proper Harvest of the Allowable 
   Sale Quota for Timber, and a Renewal of the Federal Government's 
Compact With State and Local Governments To Contribute a Fair Share of 
                    Taxes on Federal Land in Montana

       Whereas, the ability of Montana's economy has historically 
     been dependent on use of our abundant natural resources; and
       Whereas, the natural resource harvest has contributed 
     billions of dollars to Montana's economy by providing 
     employment opportunities to members of our communities and by 
     supporting our business communities; and
       Whereas, revenue from industries related to natural 
     resource harvest has produced taxes for the support of local 
     and state governments; and
       Whereas, the federal government has long recognized the 
     importance of supporting local governments in counties where 
     the United States controls management of public lands by 
     reimbursing state and local governments by payments in lieu 
     of taxes (PILT); and
       Whereas, a variety of federal legislation, such as the 
     Forest Reserve Act of 1890 sought to make equitable 
     distribution to counties and to the education system of 25% 
     of net proceeds derived by the sale of resources harvested on 
     federal land; and
       Whereas, the federal government is now reducing the volume 
     of timber cut in relation to the allowable sale quotas (ASQ), 
     redistributing funds historically contained in the 25% fund 
     (outfitter fees), reducing its commitment to full funding of 
     PILT, which was reduced from 100% in 1994 to 53% in 1998, and 
     redefining its commitment to states and counties ( a 
     decoupling effort to overturn the 1890 Forest Reserve Act); 
     and
       Whereas, this effort has and will cause irreparable 
     financial harm to state and local governments, our natural 
     resource industries, and employment opportunities for 
     Montanans.
       Now, therefore, be it resolved by the Senate and the House 
     of Representatives of the State of Montana:
       That the Legislature of the State of Montana petition the 
     U.S. Congress to ensure a full commitment by the federal 
     government to full funding of PILT, a commitment toward the 
     proper harvest of the natural resource base by way of already 
     adopted ASQ, and a renewal of its compact with states and 
     local governments to contribute to the federal government's 
     fair share in taxes on land present in Montana but retained 
     by the federal government.
       Be it further resolved, that the Secretary of State send 
     copies of this resolution to the President of the United 
     States, the Secretary of State of the United States, the 
     President of the United States Senate, the Speaker of the 
     United States House of Representatives, the Western 
     Governors' Association, and the Montana Congressional 
     Delegation.

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