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Community Aid & Accountability

Payment in Lieu of Taxes (PILT)

Payments in Lieu of Taxes (PILT) Authorized

On May 5, 2017, the President signed the Consolidated Appropriations Act, 2017 (H.R. 244) which appropriated $465 million in discretionary funding for PILT. The Department of Interior is preparing the necessary calculations to issue payments for the FY 2017 PILT program. Payments are expected to be issued to states prior to June 30, 2017. Organized boroughs will receive their payment directly from the Department of Interior. DCRA is mailing the applications to apply for PILT funds to cities in the unorganized borough beginning the week of May 15, 2017.  Cities in the unorganized borough will begin receiving payments in State fiscal year 2018.

The federal Payment in Lieu of Taxes (PILT) Program provides payments to local governments that contain certain federally-owned lands known as "entitlement lands". PILT payments are intended to help offset losses in property taxes due to nontaxable federal lands within municipal boundaries. The U.S. Department of Interior administers PILT payments to boroughs, and DCRA administers federal PILT payments to cities within the unorganized borough. Eligible applicants in the unorganized borough are notified of the administrative requirements by April 1st each year. To receive funding, an eligible municipality must submit a resolution to the department that requests the distribution and verifies the municipality meets all eligibility requirements. Distributions under the Payment in Lieu of Taxes Program are made beginning in July of each fiscal year.

State FY 2018 PILT payment amounts are now listed on our website!   A total of $10,888,336.17 was awarded and distributed in FY 2018. Click the PILT Status Report Link above and it will guide you to the page with final award amounts for each community. 

For more information about the Payment in Lieu of Taxes program contact:

Debi Kruse

Local Government Specialist V
Department of Commerce, Community, and Economic Development 
Division of Community and Regional Affairs
P.O. Box 110809
Juneau, AK 99811-0809
Phone: 907-465-5541
Fax: 907-465-4761