Title: MORE PILT Act
Policy area: Public Lands and Natural Resources

Summary:
Making Obligations Right by Enlarging Payments In Lieu of Taxes Act or the MORE PILT Act
This bill directs the Department of the Interior to develop a modeling tool that calculates the approximate market value of land covered by the payment in lieu of taxes (PILT) program and the approximate amount of local tax revenue the land would generate if privately owned. The PILT program compensates local governments for tax revenue lost due to tax-exempt federal lands within their boundaries.
Interior must annually report on the value of land covered by the PILT program, the tax revenue the land would generate if privately owned, and how PILT payments could more accurately reflect that tax revenue.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1008 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 1008

 To require the Secretary of the Interior to develop a modeling tool, 
   conduct a study, and issue reports relating to the tax equivalent 
     amount of payments under the payment in lieu of taxes program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2021

    Mr. Lee (for himself, Mr. Risch, and Mr. Crapo) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of the Interior to develop a modeling tool, 
   conduct a study, and issue reports relating to the tax equivalent 
     amount of payments under the payment in lieu of taxes program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Making Obligations Right by 
Enlarging Payments In Lieu of Taxes Act'' or the ``MORE PILT Act''.

SEC. 2. 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 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. 3. 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 4(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. 4. 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.
            (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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