Local governments and school districts with state property in their jurisdiction will receive additional funding in their payment in lieu of taxes from the state this year thanks to legislation introduced by Rep. Peter Pettalia and approved by the House today.
The Legislature is adjusting its 2012 spending plan with year-end supplemental appropriations bills and Pettalia’s amendment added almost $1.3 million to the pot for local PILT payments.
“Falling property values and ever increasing operation costs have put local government budgets in a real bind the last few years, but the PILT payments have always been considered a fraction of where the taxes would be if the property was in private hands,” said Pettalia, R-Presque Isle. “The Legislature has worked to up the payment rate year after year, and this time I am happy to report there will be additional money in the calculations.”
The PILT increase is tapping $1 million from the state general fund, $273,600 from the Game and Fish Protection Fund and $25,800 from the Michigan State Waterways Fund.
The state pays local government entities a flat per/acre amount for certain qualified land in place of ad valorem assessed taxes, depending on how the state acquired the land. Property categories for the PILT distribution are commercial forest reserve, purchased land and swamp/tax reverted lands.
The legislation now goes to the Senate for consideration.