Montana counties will receive $31.8 million in Payment in Lieu of Taxes (PILT) for 2017, federal officials announced last week. PILT funds are distributed to counties with federal land to offset the fact that those lands pay no local property taxes.
The presence of those federal lands creates demands for local government services, such as law enforcement and infrastructure. Jefferson County received about $1.178 million last year in PILT funds and will receive about $1.216 million for the coming year. President Donald Trump’s proposed budget would cut PILT funds by about 15 percent.
Montana’s two senators both acknowledged the importance of PILT funds to Montana counties. “PILT payments help Montana counties provide critical services and keep a balanced budget,” Montana’s Democratic U.S. Senator JonTester said.
“Local officials will use these resources to build roads, support important infrastructure projects, and bolster local police and fire departments. I know how important PILT payments are to Montana, and I will keep fighting to secure these essential investments for rural communities.” As a senior member of the Senate Appropriations Committee, Tester worked with Republicans and Democrats to secure these resources in the federal budget earlier this year. S
senator Steve Daines, a Republican, said, “PILT payments are essential for Montana’s rural counties – to keep our public services operating. The PILT program provides critical support for the safety of Montana’s rural counties.” Fifty-five Montana counties will receive PILT payments this year totaling around $31.8 million. Tester called on the Trump Administration to reverse course and fully fund PILT for Montana counties rather than making the proposed 15 percent cut.
