U.S. Senator Pete Domenici, R-NM, reported that most New Mexico counties will see an increase in the payments the federal government pays them for lost tax revenue on public land due to the economic rescue plan passed by Congress and signed into law by President George W. Bush last week.
Domenici said the Emergency Economic Stabilization Act (HR 1424) significantly increases the payments to counties under the Payment in Lieu of Taxes (PILT) program, which benefits 32 of New Mexico’s 33 counties. The bill fully funds the PILT program through 2012, meaning counties could see their PILT payments increase 20 to 30 percent.
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Sandoval County is slated to receive $1,342,356 this fiscal year for the PILT program, but according to Domenici that number will increase over the next four years. Sandoval County received $1,367,086 last fiscal year.
The final number for 2008 is not complete because the Bureau of Land Management has not calculated the final numbers.
“The PILT program is a mainstay revenue source for many New Mexico counties, and our new law will mean that these counties get a fairer share of the revenue they lose because of government-held lands,” Domenici said. “For all the noise surrounding the economic rescue package, there are some good things in it that will directly benefit the people of New Mexico. The PILT payments are one such benefit. Extending the Rural Schools program will also mean more time and resources for counties to adjust to the possibility that these payments will end in the future.”
In June, the Bureau of Land Management released $22.4 million in 2008 PILT payments to New Mexico counties, including PILT funds that are paid in addition to revenue from oil and gas leases and sales of minerals, timber and other materials to compensate for certain tax-exempt federal lands.
Based on the 2008 PILT payment, counties could share at least $250,000 more in federal payments next year, though it is worth noting that overall PILT distributions fluctuate from year to year. The top five New Mexico counties receiving the largest 2008 PILT payments are Eddy, $1.88 million; Otero, $1.86 million; Chaves, $1.69 million; Doña Ana, $1.68 million; and Rio Arriba, $1.57 million. Sandoval County is eighth on the list. Only Curry County does not receive PILT funding because there is no eligible federal land within its borders.
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