Payments in Lieu of Taxes (PILT): Federal Analysis

Summary

This practice note provides a comprehensive analysis of the Department of the Interior's (DOI's) PILT program, which is a federal initiative that offsets the loss of property tax revenue for local governments due to the presence of nontaxable federal lands within their jurisdictions. This analysis covers the legal framework established by the PILT Act of 1976 and subsequent amendments, including the eligibility criteria for entitlement lands and detailed payment calculation formulas that use alternatives based on acreage and population ceilings. It discusses the impact of recent appropriations acts, including the Consolidated Appropriations Act, 2024, which appropriated $621,635,188 (of which $621,235,188 was for payments and $400,000 for administration), and the Full-Year Continuing Appropriations and Extensions Act, 2025, which authorized $645,169,260 for FY 2025 (of which $644,769,260 was for payments and $400,000 for administration).