[Congressional Record Volume 149, Number 2 (Wednesday, January 8, 2003)]
[Extensions of Remarks]
[Pages E52-E53]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   PROPERTY TAX ENDOWMENT ACT OF 2003

                                 ______
                                 

                         HON. GEORGE RADANOVICH

                             of california

                    in the house of representatives

                       Wednesday, January 8, 2003

  Mr. RADANOVICH. Mr. Speaker, to provide full funding for the payment 
in lieu of taxes program for the next five fiscal years, to protect 
local jurisdictions against the loss of property tax revenues when 
private lands are acquired by a Federal land management agency, and for 
other purposes.


                    in the house of representatives

       Mr. Radanovich introduced the following bill; which was 
     referred to the Committee on Resources, and in addition to 
     the Committee on Agriculture, for a period to be subsequently 
     determined by the Speaker, in each case for consideration of 
     such provisions as fall within the jurisdiction of the 
     committee concerned

                                 A BILL

       To provide full funding for the payment in lieu of taxes 
     program for the next five fiscal years, to protect local 
     jurisdictions against the loss of property tax revenues when 
     private lands are acquired by a Federal land management 
     agency, and for other purposes.
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Property Tax Endowment Act 
     of 2003''.

     SEC. 2. FULL FUNDING FOR PAYMENTS IN LIEU OF TAXES.

       Section 6906 of title 31, United States Code, is amended--
       (1) by striking ``Necessary'' and inserting ``(a) In 
     General.--Necessary'';
       (2) by striking ``Amounts'' and inserting ``Except as 
     provided in subsection (b) amounts''; and
       (3) by adding at the end the following new subsection:
       ``(b) Full Funding.--For fiscal years 2004 through 2008, 
     amounts necessary to carry out this chapter shall be made 
     available to the Secretary of the Interior, out of any funds 
     in the Treasury not otherwise appropriated and without 
     further appropriation, for obligation and expenditure in 
     accordance with this chapter.''.

     SEC. 3. PROTECTION OF LOCAL TAX BASE AS PART OF FEDERAL LAND 
                   ACQUISITION.

       (a) Election of Payment To Offset Revenue Loss.--
       (1) Notification of local governments.--Whenever a Federal 
     land management agency acquires privately owned land by 
     purchase, exchange, or donation, the head of the agency shall 
     notify the unit of general local government within whose 
     jurisdiction the land lies.
       (2) Election.--If a unit of general local government is 
     notified by a Federal agency under paragraph (1) regarding an 
     acquisition of land by the Federal agency, the elected 
     officials with authority under State law to govern the unit 
     may, within 90 days after that notification, elect to receive 
     from the Federal land management agency a one-time payment in 
     an amount sufficient to offset the long term revenue loss to 
     the local government that will result from the acquisition of 
     the land by the Federal agency.
       (b) Treatment of Land After One-Time Payment.--
       (1) In general.--If a unit of general local government 
     receives, pursuant to an election under subsection (a), a 
     one-time payment with respect to land acquired by a Federal 
     land management agency, the land shall not be treated as 
     entitlement land for purposes of chapter 69 of title 31, 
     United States Code, notwithstanding any changes that may 
     thereafter occur in the value of the land, interest rates, 
     taxation rates, or any other economic factor.
       (2) Conforming amendment.--Section 6901(1) of title 31, 
     United States Code, is amended by adding at the end the 
     following:
       ``Such term does not include any land with respect to which 
     a unit of local government receives a one-time payment under 
     the Property Tax Endowment Act of 2003.''
       (c) Application.--
       (1) In general.--This section shall apply to any land 
     acquisition by a Federal land management agency completed 
     after September 30, 1998.
       (2) Application to prior acquisitions.--For purposes of the 
     application of this section to an acquisition of land by a 
     Federal agency before the date of the enactment of this Act, 
     the head of the agency is deemed to have notified the unit of 
     general local government concerned in accordance with 
     paragraph (1) on the date of the enactment of this Act.
       (3) No effect on title.--This subsection shall not affect 
     any right, title, or interest of the United States in or to 
     land.

     SEC. 4. ONE-TIME PAYMENT.

       (a) In General.--If a unit of general local government 
     elects under section 3(a)(2) to receive a one-time payment 
     with respect to land acquired by a Federal land management 
     agency--
       (1) the head of the Federal agency shall determine and make 
     such payment in accordance with this section; and
       (2) such acquisition may not occur before the date the 
     payment is made.
       (b) Amount of Payment.--
       (1) In general.--The amount of such payment--
       (A) shall be sufficient to yield a revenue stream in 
     perpetuity equal to the property taxes currently required to 
     be paid with respect to the land, determined as an annuity 
     amount based on an interest rate equal to the current average 
     yield on outstanding obligations of the United States with 
     remaining periods of maturity of 10 years on the date of 
     acquisition of the land by the Federal agency;
       (B) shall be determined based on the rate of tax and land 
     valuation in effect for the land under the property tax laws 
     of the unit of general local government that apply in the 
     local tax year in which the land is acquired by the Federal 
     land management agency; and
       (C) shall include amounts to offset property taxes that 
     were attributable to--
       (i) improvements on the acquired lands; or
       (ii) the use of the lands for business enterprise.
       (2) Federal acquisitions from tax-exempt entitities.--If a 
     Federal land management agency acquires lands by purchase, 
     donation, exchange, or other means from a nongovernmental 
     organization or other entity that is exempt from local 
     taxation, paragraph (1) shall apply as if the lands were 
     acquired from the last person that owned the lands that was 
     not exempt from such taxation.
       (3) Deduction of pilt payments.--In the case of a payment 
     under this section to a unit of general local government with 
     respect to land that was acquired by a Federal land 
     management agency before the date of the enactment of this 
     Act, the head of the agency shall deduct, from the amount 
     otherwise required to be paid, the amount of any payment made 
     to the unit with respect to the land after September 30, 
     1998, under Chapter 69 of title 31, United States Code.
       (c) Time for Payment.--The payment required under 
     subsection (a) in connection with a land acquisition shall be 
     made before the Federal land management agency takes 
     possession of the land.
       (d) Use of Payment.--
       (1) In general.--Amounts paid to a unit of general local 
     government under this section shall be deposited into a trust 
     fund established and administered by the unit of general 
     local government.
       (2) Restriction on use of principal.--The principal of the 
     trust fund may not be expended.
       (3) Use of interest.--Interest generated by the trust fund 
     shall be available to the unit of general local government 
     for any governmental purpose.

     SEC. 5. RELATIONSHIP OF ONE-TIME PAYMENTS TO PAYMENTS IN LIEU 
                   OF TAXES

       A one-time payment received by a unit of general local 
     government under this Act shall not be deducted or in any way 
     used to offset payments required to be made to the unit under 
     chapter 69 of title 31, United States Code.

     SEC. 6. DEFINITIONS.

       In this section:

[[Page E53]]

       (1) Donation.--The term ``donation'' includes any 
     conveyance of land to the Federal Government that is required 
     as a condition of receipt of any benefit under Federal law.
       (2) Federal land management agency.--The term ``Federal 
     land management agency'' means each of the following:
       (A) The Forest Service.
       (B) The Bureau of Land Management.
       (C) The National Park Service.
       (D) The United States Fish and Wildlife Service.
       (3) Unit of general local government.--The term ``unit of 
     general local government'' has the meaning given the term in 
     section 6901(2) of title 31, United States Code.

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