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Grants & Funding Programs

Payment in Lieu of Taxes (PILT)

Payment in Lieu of Taxes (PILT) Funding for 2021

Secretary of the Interior Deb Haaland announced more than 1,900 local governments around the country will receive $529.3 million in Payments in Lieu of Taxes (PILT) funding for 2021. Since local governments cannot tax federal lands, annual PILT payments help to defray costs associated with maintaining important community services. For more information on the announcement go to https://www.doi.gov/pressreleases/secretary-haaland-announces-5293-million-support-vital-community-services. More information from DOI on the PILT program can be found at https://www.doi.gov/pilt

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 required 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 required is to send the verification form with correct and current information to the Division.

Verification Form:

FY22 PILT Verification Form

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

Department of Commerce, Community, and Economic Development
Division of Community and Regional Affairs
455 3rd Avenue, Suite 140
Fairbanks, AK 99701
Phone: 907-451-2731
Fax: 907-451-2742
Email: caa@alaska.gov