A significant hike in the payment in lieu of taxes (PILT) moved
one step closer to reality on Thursday, as the House passed
legislation to triple the rate of payment on state-owned forest and
game lands.
The announcement was made Thursday by state Rep. Martin Causer,
R-Turtlepoint, chairman of the House Timber Caucus.
The legislation – which passed the House by a 176-19 vote – will
now return to the Senate for approval before going in front of Gov.
Ed Rendell for his signature. Also backing the measure is state
Sen. Joe Scarnati, R-Brockway.
Under the current law, $1.20 is allocated for each acre of land
and is divided three ways: 40 cents to the county, 40 cents to the
local municipality, and 40 cents to the school district. Under
Senate Bill 868, $3.60 would be provided per acre, or $1.20 per
acre each for the county, local municipality and school
district.
“With so much state-owned land, the tax burden on homeowners and
businesses in our communities is great,” Causer said. “It is long
past time the state provide a greater PILT to relieve the burden
for the citizens of Cameron, Potter and McKean counties. It’s been
a long road with this thing, but it’s something we need.”
Causer has led the push to increase the payment issued from the
state to local government units in lieu of taxes for property that
is owned and used by the Commonwealth of Pennsylvania.
The lawmaker’s amendment to the legislation calls for the use of
gaming revenue to cover the cost of the PILT increase.
“I am determined to see that our rural counties and school
districts see an increase in the PILT,” said Causer. “The use of
gaming revenues to fund an increase removes obstacles that would
help to reduce the serious burden local governments and school
districts with large areas of state-owned land face.”
The legislation has met opposition from the Pennsylvania Game
Commission, who claim the increase could jeopardize its fiscal
solvency. In response, local lawmakers said the agency wouldn’t be
looking at a deficit if it managed its assets properly.
Officials said the measure would increase the commission’s
annual PILT payment from $1.7 million to $5.1 million. The bill is
being backed by the Pennsylvania Forest Products Association, which
represents several forest products industries and individuals
across the region.
In regards to that, Causer said numerous lawmakers felt all
along the revenue could have come from timber harvesting, “but,
there wasn’t support for that.”
“We maintain that it could be done by timber harvesting,” Causer
said. “They (state agencies) are taking millions out of our area in
timber revenue alone, not to mention oil and gas. Our school
districts and municipalities really need that revenue. I drafted
the amendment in the order of compromise.”
The bill was passed in the Senate in November by a vote of 49-1.
The changes to the bill made in the House will return the bill to
the Senate for concurrence. There was no immediate word on when a
vote could occur.
Causer said he’s hopeful no more amendments will be added to the
legislation.
