[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
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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.
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(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.''.
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