Tax Aids and Credits

Aids - Payment in Lieu of Taxes

Statewide Outcome(s):

Payment in Lieu of Taxes (PILT) supports the following statewide outcome(s).

Efficient and accountable government services.

Context:

Increased service demands from tax-exempt property can lead to financial strain for local governments. State payments to local governments exist in various forms to enhance local government revenue, assist in basic service delivery, and reduce property tax burdens on homeowners and/or businesses.

Funding Source: State General Fund.

Strategies:

Provide compensation for the property taxes lost to local government when the DNR acquires natural resource land for the state.

The state makes payments in lieu of taxes primarily to counties for certain Department of Natural Resources (DNR) lands, county-administered other natural resource land, land utilization project land, and commissioner-administered natural land.

Results:

The potential fiscal impacts of tax-exempt state-owned land are reduced for local governments.

Performance Measures Notes:

Acres of natural resources land compares calendar year 2009 (previous) to 2011 (current).

For additional information, visit the Revenue Department (http://www.revenue.state.mn.us/Pages/default.aspx) website and search ‘PILT’.