Small County PILT Parity Act

# Small County PILT Parity Act Summary **What It Would Do:** This bill would modify how Payment in Lieu of Taxes (PILT) funds are distributed to counties. PILT is a federal program that compensates counties for tax revenue they lose because the federal government owns large amounts of land within their borders (national forests, parks, etc.). The bill would adjust the formula to provide more equitable funding to smaller counties that may be disproportionately affected by federal land ownership. **Who It Affects:** Small counties—particularly in rural areas with significant federal land holdings—would be the primary beneficiaries.

These counties often struggle with reduced tax bases because they cannot collect property taxes on federally-owned land. The changes could also affect state budgets and potentially the federal budget, depending on how funding is redistributed. **Current Status:** The bill is currently in committee (S 1175 in the 119th Congress), meaning it has not yet been voted on by the full Senate. It was introduced by Senator Steve Daines (R-Montana), a state with substantial federal land ownership.