S. 1175: Small County PILT Parity Act

The Small County PILT Parity Act is a legislative proposal that seeks to modify the way payments are made to local governments in counties with low population sizes. PILT stands for Payments in Lieu of Taxes, which are federal payments made to local governments to compensate for the loss of property tax revenue from federal lands within their jurisdictions. Here’s a summary of the key provisions of the bill:

1. Revision of Population Thresholds

The bill proposes to change the population threshold used for classifying counties eligible for these payments. Specifically, it will:

• Lower the population cap from 4,999 to 999 for qualifying low-population units of general local government.
• Adjust the calculations of payments so that counties with populations starting at 1,000 will receive compensation based on a tiered rate system.

2. New Payment Structure

The bill introduces a new tiered payment structure based on county population. The amounts for each tier are set as follows:

• For counties with a population of 1,000: $394.15 per person
• For 2,000: $312.50 per person
• For 3,000: $281.70 per person
• For 4,000: $256.08 per person
• And this continues incrementally down to 50,000 at $90.12 per person.

3. Purpose and Impact

The intention behind this bill is to ensure that smaller counties with federal land do not lose significant tax revenue opportunities due to their lower populations. By revising the thresholds and payment structure, the act aims to provide fairer financial support to these smaller jurisdictions, thereby enhancing their capacity to provide public services despite limited local tax bases.

4. Legislative Process

The bill was introduced in the U.S. Senate and has been referred to the Committee on Energy and Natural Resources for further consideration. It is part of ongoing discussions about the financial equitable distribution of federal funding to local governments.

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