Small County PILT Parity Act
Summary
The Small County PILT Parity Act would modify how the federal government distributes Payment In Lieu of Taxes (PILT) funds to county governments. PILT funds compensate counties for property tax revenue they lose because the federal government owns large tracts of land within their borders that cannot be taxed. Currently, the formula provides lower per-capita payments to smaller counties. This bill would create four new population tiers at 1,000, 2,000, 3,000, and 4,000 residents to increase payments for counties with populations under 5,000, ensuring they receive higher per-capita funding as their populations decrease.
If enacted, the bill would help rural counties fund essential services such as emergency response, law enforcement, transportation infrastructure, schools, and roads. The bill is currently under consideration by the Senate Committee on Energy and Natural Resources and has received bipartisan support from rural county associations and the National Association of Counties. The legislation would not reduce funding for other counties, instead adjusting the formula to provide greater equity for very small rural communities with significant federal land holdings.