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Community Aid & Accountability

Payment in Lieu of Taxes (PILT)

Awaiting Payments in Lieu of Taxes
(PILT) Authorization

In July 2017 the House Appropriations Committee released their draft Federal Fiscal Year 2018 Interior, Environment and Related Agencies Appropriations Bill. This Bill will fund the PILT program at $465 million, the same as the Federal Fiscal Year 2017 level. The Trump Administration has requested $397 million – a 15 percent reduction in the 2018 Federal Budget. DCCED is waiting for the bill to be finalized and passed in Congress and signed by the President. Until that time, we don’t know how much the State of Alaska will receive.

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. To receive funding, an eligible municipality must submit an application form 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 or within 30 days of receipt of funds from the federal government.

Please Note:

The state regulations for the PILT program have been changed. With those changes come a number of requirements that have been removed from the application process. It is no longer necessary for an eligible city to submit a budget, an audit (or Certified Financial Statement), or a resolution to apply for the program. All that is necessary is to send the application form with correct and current information to the Division.

Application Form:

Coming soon!

 

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
Email:
debi.kruse@alaska.gov