Legislature Okays Jump in Local Reimbursement for State-owned Forests

HARRISBURG – Today Senator Joe Scarnati (R-25) has announced that legislation to increase the Payment in Lieu of Taxes (PILT) amount per acre that local counties, municipalities and school districts receive will be a part of this year’s budget package. The approval is expected to be a boon for Clinton County where county government and local elected officials have long sought such a hike.

“Local school districts have been forced to increase property taxes year after year, to cover the soaring costs of education,” Scarnati stated.  “In rural Pennsylvania we deserve to be treated fairly – just as those in suburban and urban areas of our state are treated. Increasing the PILT is a vital part of making sure that rural Pennsylvanians are not burdened more than those who reside in more populated areas of our Commonwealth.”

Scarnati explained that he has worked to have language to increase the PILT included in the fiscal code bill.  The PILT increase will apply to lands currently owned by the Department of Conservation and Natural Resources (DCNR) – increasing their total PILT amount from the current $3.60 to $6.00 per acre.  With enactment of the fiscal code bill, the PILT change is set to take effect on July 1, 2017.

“Nearly a decade ago, I fought hard to increase the PILT from $1.20 per acre to the current $3.60 per acre,” Scarnati stated.  “However, it has become abundantly clear over the last several years that this amount needed to be increased once again.  With the increase language I am including in a fiscal code bill, we will once again see a great investment of state dollars in our local area.”

According to Scarnati, once the rate change takes effect, there will be a 67% increase in PILT for DCNR land.  Of the new $6.00 PILT per acre on DCNR land, $2.00 will go to each the municipality, school district and county.  While the new PILT increase applies to DCNR land – land owned by the PA Fish and Boat Commission and PA Game Commission will continue to receive a PILT of $3.60 per acre.