Rep. Martin Causer announced on Apr. 27 that he has introduced legislation aimed at increasing revenue for counties, municipalities, and school districts where large amounts of land are managed by the state.
The proposal seeks to expand the current Payment in Lieu of Taxes (PILT) system by requiring a portion of revenue from timber, oil, and natural gas sales—as well as income from radio towers, rent, royalties, and park user fees on state-owned land—to be shared with local government entities where the land is located.
“The local governments where state land is located are restricted from future economic development and continually struggle with a limited tax base,” Causer said. “While agencies do pay a small amount in lieu of taxes to these entities, it is a small fraction of what the land could be worth considering the significant revenue the state is collecting from the way they are using the land.”
Under this bill, 20% of total revenue collected from these sources would go into a restricted fund for distribution across Pennsylvania’s local governments. Disbursements would be proportional to how much state-owned acreage exists within each municipality, school district, or county. Causer noted that this approach resembles federal law regarding payments to local governments from national forest timber sales.
“My bill would hold the Commonwealth accountable for fairly compensating our communities and taxpayers for the benefits it sees from the use of state-owned land in our area,” Causer said.
Currently, three agencies—the Department of Conservation and Natural Resources, Pennsylvania Game Commission, and Pennsylvania Fish and Boat Commission—each contribute $9 per acre under PILT arrangements; this sum is divided among county, municipality, and school district. Beginning in fiscal year 2030-31, PILT rates will adjust every five years based on inflation. The House Finance Committee will consider Causer’s proposed legislation next.
