The state may have to pay three times as much as it currently
pays for land it owns.
State Sen. Joe Scarnati, R-Brockway, has re-introduced
legislation that would increase the Payment In Lieu of Taxes (PILT)
from $1.20 per acre to $3.60 per acre.
“The state is not paying its fair share; thus the local
taxpayers are having their property taxes raised to foot the bill,”
said Scarnati, the deputy majority whip who represents the 25th
Senatorial District.
Scarnati originally introduced this piece of legislation in
2003, but it was part of the gambling bill. Earlier this year, the
state Supreme Court determined that PILT’s inclusion – along with
funding for volunteer fire departments – in the gambling
legislation was unconstitutional and violated the “single subject”
of the bill. The court ruled that these items had to be in a
separate piece of legislation.
The bill’s re-introduction is a procedural matter, both Scarnati
and state Rep. Martin Causer, R-Turtlepoint, said. Both expect it
to pass again. Scarnati said it may take until the end of the
legislative session for it to pass.
“This will not only significantly assist our rural area, which
has too much state land to begin with, but it will also deter the
state from purchasing additional land,” Scarnati said.
For Scarnati and Causer, it’s been a delay in the
inevitable.
“Absolutely I was disappointed,” Scarnati said about the Supreme
Court decision. “This is something we really fought for … that’s
got to be the foundation for any component for property tax reform
in Pennsylvania.”
Scarnati added that this was an ideal time to introduce the
legislation given the current special session on property tax.
“Simply put, you cannot have local tax reform to assist in
bringing down skyrocketing property taxes, until the state pays its
fair share for land it owns,” he said.
The amount of the increase – from $1.20 to $3.60 -ðis the same
because, as Scarnati said, “it makes a lot of sense. We are on the
same track, ask for the same amount.”
Scarnati said this should also deter the state from buying any
more land.
“If this legislation says anything to the state it is ‘Quit
buying land in our area.”
He added that typically, the Game Commission is the major land
buyer, generally buying land in this area.
“In reality, it’s much cheaper to buy land here than in Bucks
County.”
In the 25th District, 44 percent of the land is publicly owned,
Scarnati said, adding this benefits areas statewide.
With the increase, Scarnati pointed out that it would increase
the Commonwealth an additional $8 million of fairness tax to be
dispersed to the counties, municipalities and school districts.
While $8 million is just a small portion of the state’s annual
budget, it will have a considerable impact in rural communities
with a lot of state lands.
All state forests and parks, as well as all state game lands,
are not subject to taxation by the county, municipality or the
school district. Many, however, are subject to PILT, which is
evenly distributed among the three taxing bodies.
“It’s something he and I have been working on for quite a
while,” Causer said. “It is absolutely needed.”
Causer reiterated the fact this was reintroduced doesn’t mean
it’s bad legislation.
“It needed to be it’s own individual bill,” he said. “It’s a
procedural thing … we are committed to seeing it back through.”
The breakdown for local counties is as follows: Cameron County
has 12,963 acres in game lands, 130,535.24 in state forest and
10,713.4 in state parks; Elk County has 72,061.12 in game lands,
97,029.06 in state forest and 2,990.36 in parks; McKean County has
24,801.56 in game lands, 3,534.51 in state forest and 617.98 in
parks; and Potter County has 18,696.92 in game lands, 266,847.62 in
state forest and 2,136.75 in parks.
“Almost 38 percent of state forest and park lands and over 18
percent of game lands are in counties I represent,” Scarnati said.
“Clearly, this places a tremendous burden on the taxpayers in the
25th District. Seemingly, we are being asked to pick up the tab for
land owned by the state.”
