[Congressional Record Volume 167, Number 137 (Monday, August 2, 2021)]
[Senate]
[Pages S5669-S5671]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2268. Mr. LEE submitted an amendment intended to be proposed to 
amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema (for herself, 
Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. Collins, Mr. 
Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the bill H.R. 
3684, to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of division G, add the following:

                  TITLE XII--PAYMENTS IN LIEU OF TAXES

     SEC. 71201. SHORT TITLE.

       This title may be cited as the ``Making Obligations Right 
     by Enlarging Payments In Lieu of Taxes Act'' or the ``MORE 
     PILT Act''.

     SEC. 71202. FINDINGS; SENSE OF CONGRESS.

       (a) Findings.--Congress finds that--
       (1) Congress agreed with recommendations of a Federal 
     commission that, if Federal land is to be retained by the 
     Federal Government and not contribute to the tax bases of the 
     units of general local government within the jurisdictions of 
     which the land is located, compensation should be offered to 
     those units of general local government to make up for the 
     presence of nontaxable land within the jurisdictions of those 
     units of general local government;
       (2)(A) units of general local government rely on the 
     stability of property tax revenues; and
       (B) Federal programs that are subject to the annual 
     appropriations process, such as the payment in lieu of taxes 
     program, offer far less certainty than property taxes as a 
     form of revenue for units of general local government;
       (3) Federal agencies have determined that payments to units 
     of general local government under the payment in lieu of 
     taxes program are far lower than what would be due to units 
     of general local government under tax equivalency;
       (4) payments under the payment in lieu of taxes program 
     help units of general local government carry out vital 
     services, such as firefighting, police protection, public 
     education, construction of public schools, construction of 
     roads, and search-and-rescue operations; and
       (5) the technology exists to more accurately approximate 
     what the taxable value of

[[Page S5670]]

     land held by the Federal Government would be if that land 
     were taxable by units of general local government.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Federal Government should--
       (1) determine the amount that payments under the payment in 
     lieu of taxes program would be if those payments were 
     equivalent to the tax revenues that units of general local 
     government would otherwise receive for the same land; and
       (2) compensate those units of general local government 
     accordingly.

     SEC. 71203. DEFINITIONS.

       In this Act:
       (1) Entitlement land.--The term ``entitlement land'' has 
     the meaning given the term in section 6901 of title 31, 
     United States Code.
       (2) Highest and best use.--
       (A) In general.--The term ``highest and best use'', with 
     respect to a parcel of entitlement land, means the potential 
     use described in subparagraph (B) that would result in the 
     highest value of the land.
       (B) Potential uses described.--A potential use referred to 
     in subparagraph (A) is any use of a parcel of land that, in 
     the absence of Federal ownership of the land, would be--
       (i) physically possible;
       (ii) reasonably probable;
       (iii) legal;
       (iv) appropriately supported; and
       (v) financially feasible.
       (3) Market value.--The term ``market value'', with respect 
     to a parcel of entitlement land, means the value that the 
     land would have in a fair and open market--
       (A) disregarding any limitation on economic development and 
     any other development restriction due to Federal ownership of 
     the land or any Federal designation; and
       (B) calculated within an appropriate margin of error, as 
     determined by the Secretary.
       (4) Payment in lieu of taxes program.--The term ``payment 
     in lieu of taxes program'' means the payment in lieu of taxes 
     program established under chapter 69 of title 31, United 
     States Code.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (6) Tax equivalent amount.--The term ``tax equivalent 
     amount'', with respect to payments under the payment in lieu 
     of taxes program, means the approximate amount of property 
     tax revenues that would be generated for units of general 
     local government with respect to entitlement land--
       (A) if that land were--
       (i) privately owned; and
       (ii) subject to--

       (I) local zoning laws (including regulations);
       (II) local tax laws (including regulations); and
       (III) any other relevant law, rule, or authority; and

       (B) taking into account any maximum or minimum taxable 
     value of land that is imposed by a State or unit of general 
     local government.
       (7) Tool.--The term ``tool'' means the tool or combination 
     of tools developed and maintained under section 71204(a)(1).
       (8) Unit of general local government.--The term ``unit of 
     general local government'' has the meaning given the term in 
     section 6901 of title 31, United States Code.

     SEC. 71204. MODELING TOOL, STUDY, AND REPORTS RELATING TO THE 
                   TAX EQUIVALENT AMOUNT OF PAYMENTS UNDER THE 
                   PAYMENT IN LIEU OF TAXES PROGRAM.

       (a) Modeling Tool.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the Secretary of Agriculture and the head of any other 
     Federal agency that the Secretary determines to be 
     appropriate, shall develop and maintain a market analysis 
     tool, mass appraisal tool, or other appropriate modeling tool 
     (or combination of tools), as determined to be appropriate by 
     the Secretary, that--
       (A) accounts for--
       (i) reasonable and customary valuation factors; and
       (ii) if, in the determination of the Secretary, data are 
     inadequate to calculate a sufficiently precise estimate of 
     the market value of the applicable parcel of entitlement 
     land, assumptions of those factors; and
       (B) calculates, in a timely manner--
       (i) the approximate market value of entitlement land; and
       (ii) the approximate tax equivalent amount of payments 
     under the payment in lieu of taxes program for that land.
       (2) Requirements.--The tool shall--
       (A) calculate, in a timely manner, the approximate market 
     value of entitlement land;
       (B) enable an employee or agent of the Department of the 
     Interior to manually modify factors relating to the valuation 
     model used by the tool to calculate, in a timely manner, the 
     market value of entitlement land based on new assumptions 
     relating to that land;
       (C) to the maximum extent practicable, provide technical 
     anchors relating to market data--
       (i) to ensure the ongoing integrity of the tool; and
       (ii) to ensure that the land values determined by the tool 
     are defensible and based on sound and generally accepted 
     valuation methodologies;
       (D) to the maximum extent practicable, assimilate, in a 
     visual interface--
       (i) market data, including the availability of mineral 
     extraction, energy production, water management, timber 
     management, agricultural uses, and recreational uses with 
     respect to the applicable land; and
       (ii) geospatial data relating to all entitlement land;
       (E) as frequently as practicable, automatically adjust to 
     reflect current market conditions, as reflected in readily 
     available market sources, as determined by the Secretary, in 
     consultation with the Secretary of Agriculture;
       (F) allow a user of the tool--
       (i) to estimate the value of entitlement land as that land 
     is currently used; and
       (ii) to estimate changes in that value due to future uses 
     under various scenarios under private ownership; and
       (G) provide a variety of estimates of the value of any 
     entitlement land for which there is no comparable non-Federal 
     land from which to derive the information necessary to 
     accurately calculate the market value of the entitlement 
     land, including an estimate based on the highest and best use 
     of the entitlement land if the entitlement land were 
     privately owned.
       (b) Study and Reports.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, and annually thereafter for 4 years, 
     the Secretary, in consultation with the Secretary of 
     Agriculture and the head of any other Federal agency that the 
     Secretary determines to be appropriate, shall--
       (A) conduct a study--
       (i) to evaluate all entitlement land;
       (ii) to determine, to the maximum extent practicable, the 
     market value of that land; and
       (iii) to determine, to the maximum extent practicable, the 
     tax equivalent amount of payments under the payment in lieu 
     of taxes program for that land; and
       (B) submit to Congress and make publicly available a report 
     describing--
       (i) the results of the study conducted under subparagraph 
     (A); and
       (ii) how payments under the payment in lieu of taxes 
     program could more accurately reflect the tax equivalent 
     amount.
       (2) Requirement.--In conducting the study under paragraph 
     (1)(A), the Secretary shall consider any studies conducted by 
     States, counties, or other taxing jurisdictions pertaining to 
     the tax equivalent amount of payments under the payment in 
     lieu of taxes program.
       (3) Preliminary report.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary, in consultation 
     with the Secretary of Agriculture and the head of any other 
     Federal agency that the Secretary determines to be 
     appropriate, shall submit to Congress a report that--
       (A) describes the progress of the Secretary in--
       (i) developing the tool; and
       (ii) conducting the study under paragraph (1)(A);
       (B) contains an assessment of the accuracy with which the 
     Secretary will be able to determine--
       (i) the market value of entitlement land; and
       (ii) the tax equivalent amount of payments under the 
     payment in lieu of taxes program for that land;
       (C) describes the models and data that the Secretary has 
     developed or collected, or intends to develop or collect, as 
     applicable, and plans to use in determining--
       (i) the market value of entitlement land; and
       (ii) the tax equivalent amount of payments under the 
     payment in lieu of taxes program for that land; and
       (D) includes any other information that, in the 
     determination of the Secretary, is relevant to--
       (i) the efficacy of the tool;
       (ii) the determination of--

       (I) the market value of entitlement land; or
       (II) the tax equivalent amount of payments under the 
     payment in lieu of taxes program for that land; or

       (iii) the effects of providing payments under the payment 
     in lieu of taxes program that more accurately reflect the tax 
     equivalent amount.
       (c) Contracts and Consultants.--The Secretary may contract 
     or consult with any public or private entity to analyze data, 
     conduct research, or develop a model that would contribute to 
     the reports under subsection (b) or the tool.
       (d) Data Collection and Reporting.--
       (1) In general.--The Secretary may develop reporting 
     methods to allow units of general local government to self-
     report, not more frequently than annually, data, including, 
     as the Secretary determines to be necessary--
       (A) property tax values of land;
       (B) zoning restrictions; and
       (C) mill levies.
       (2) Technical assistance.--The Secretary may provide 
     technical assistance to units of general local government 
     with respect to the reporting of information under paragraph 
     (1).
       (e) Availability of Information.--
       (1) Request for information.--Any individual or entity may 
     submit to the Secretary a request for information relating to 
     the method used by the Secretary to determine--
       (A) the market value of entitlement land; or
       (B) the tax equivalent amount of payments under the payment 
     in lieu of taxes program for that land.

[[Page S5671]]

       (2) Information provided.--The Secretary shall provide to 
     each individual or entity that submits a request for 
     information under paragraph (1)--
       (A) any data and models used by the Secretary to determine, 
     as applicable--
       (i) the market value of any entitlement land for which a 
     unit of general local government receives payments under the 
     payment in lieu of taxes program; or
       (ii) the tax equivalent amount of payments under the 
     payment in lieu of taxes program for that land; and
       (B) a description of how the data and models described in 
     subparagraph (A) are used to make the determinations 
     described in that subparagraph.
       (3) Response deadline for certain requests.--Not later than 
     30 days after receiving a request under paragraph (1) from a 
     unit of general local government pertaining to entitlement 
     land for which the unit of general local government receives 
     payments under the payment in lieu of taxes program, the 
     Secretary shall provide to that unit of general local 
     government the information described in paragraph (2) with 
     respect to that land.
       (f) Funding.--Section 200306 of title 54, United States 
     Code, is amended by adding at the end the following:
       
       ``(e) Tax Equivalency of PILT Payments Modeling Tool, 
     Study, and Report.--For each of the first 6 fiscal years 
     beginning after the date of enactment of the MORE PILT Act, 
     there shall be made available to the Secretary, out of 
     amounts made available for expenditure under section 200303, 
     $9,000,000 to carry out that Act.''.
                                 ______