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HF1922 (Legislative Session 94 (2025-2026))

Report on payment in lieu of taxes on natural resources lands required.

Related bill: SF1262

AI Generated Summary

Purpose

  • The bill requires a formal report on payment in lieu of taxes (PILT) for natural resource lands in Minnesota. The report aims to examine how PILT currently works and propose changes.

Main Provisions

  • Mandated Report Date: By December 1, 2026, the commissioner of natural resources, in cooperation with the commissioners of revenue and management and budget, and with input from stakeholders including representatives from affected local units of government and other interested parties, must prepare and submit the report.
  • Scope of the Report: The report must include recommended changes to payment in lieu of taxes for natural resource lands under Minnesota Statutes sections 477A.11 to 477A.14.
  • Analysis Required:
    • A detailed analysis of the current PILT payment and distribution system.
    • Recommendations for changes to the PILT program.
    • An analysis of the rate of payments for specific classes of natural resource lands.
    • An assessment of whether payments are adequate to offset the property tax revenue that would have been collected if the lands were privately owned.
    • A review of current funding for PILT payments.
    • An analysis of the impact of additional land acquisition on PILT funding.

Significance and Potential Changes

  • This bill does not immediately change PILT amounts or tax policy. Instead, it directs a comprehensive study and sets the stage for potential changes to how PILT for natural resource lands is calculated, funded, and distributed.
  • The recommended changes could affect how much money local governments receive to offset lost property tax revenue from state-owned natural resource lands, depending on findings about adequacy, funding, and land classifications.

Process and Stakeholders

  • Responsible Entities: Minnesota Department of Natural Resources (DNR) in collaboration with the Department of Revenue and the Management and Budget (MMB) office.
  • Stakeholders: Local units of government and other interested parties.
  • Purpose of Stakeholder Involvement: To gather input and ensure the recommended changes reflect local needs and fiscal realities.

Background Terms (for clarity)

  • Payment in lieu of taxes (PILT) on natural resource lands
  • Natural resource lands
  • Minnesota Statutes sections 477A.11 to 477A.14
  • December 1, 2026 (deadline for the report)
  • Commissioner of natural resources
  • Commissioners of revenue and management and budget
  • Local units of government
  • Rate of payments for specific classes of natural resource lands
  • Adequacy of payments to offset tax revenue if lands were in private ownership
  • Current funding for payments
  • Impact of additional land acquisition on funding

Relevant Terms - payment in lieu of taxes - natural resource lands - PILT - Minnesota Statutes 477A.11 to 477A.14 - December 1, 2026 - commissioner of natural resources - commissioners of revenue - management and budget - local units of government - rate of payments - classes of natural resource lands - offset tax revenue - private ownership - current funding - land acquisition

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 05, 2025HouseActionIntroduction and first reading, referred toEnvironment and Natural Resources Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites Minnesota Statutes sections 477A.11 to 477A.14 as the basis for a required report on payment in lieu of taxes on natural resource lands. The bill directs a future report and does not itself create or modify the cited statutes.",
      "modified": []
    },
    "citation": "477A.11 to 477A.14",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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