The U.S. Department of the Interior is distributing more than $26 million in Payments in Lieu of Taxes funding to Alaskan communities in compensation for taxes that could not be levied on federal lands in their jurisdictions during fiscal year 2013. Out of that total, the City and Borough of Wrangell will receive $389,845.
The U.S. Department of the Interior announced reauthorization last week of the PILT program which provides monetary compensation to local governments that contain national forests, Bureau of Land Management public lands, national parks and other lands dedicated to water resource development projects. The revenue helps local governments provide vital services, such as firefighting and police protection, construction of public schools and roads, and search-and-rescue operations.
Borough Finance Manager Jeff Jabusch said the money would fund a variety of projects and departments in the city.
“The money will be used for various things, like streets, schools, fire departments, police, libraries and all those sorts of things,” Jabusch said. “The money is given by the government because we have so much untaxed federal land within the Borough, so it’s akin to a property tax and the money goes the same places a property tax would go. It’s a substantial source of our revenue and we are glad it didn’t get cut as much as we thought it might.”
The city received $395,518 from PILT in 2012.
Senators Lisa Murkowski and Mark Begich also weighed in with their views of the annual payment.
“Local governments provide many of the vital services that their residents depend on, from maintaining roads and schools to firefighting and police protection,” Sen. Murkowski said. “With the federal government managing 60 percent of Alaska, the payment in lieu of taxes program ensures that our local communities have the appropriate funds to provide services that would otherwise be supported through property taxes.”
“Even as we tighten our belts and find places to reduce federal spending, it’s important that we keep smart investments in our rural communities,” Sen. Begich said. “The federal government owns more than 60% of the land in Alaska. With more federal land than any other state, PILT resources are critical to keeping many of our rural areas running smoothly. I’m pleased that after urging from the Alaska delegation, DOI has acted to keep this program going strong through the year.”
The Interior Department collects approximately $14 billion in revenue annually from commercial activities on federal lands, with a portion of the revenues being shared with states and counties in the form of revenue-sharing payments. The balance is deposited in the U.S. Treasury, which helps supports PILT funding to Boroughs.
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