Bill > SF1262

This bill requires the commissioner of natural resources, in collaboration with the commissioners of revenue and management and budget, and in consultation with stakeholders like local government representatives, to submit a comprehensive report by December 1, 2026, regarding payments in lieu of taxes (PILT) for natural resource lands. The report must analyze the current payment and distribution system for PILT, which is a mechanism that compensates local governments for tax revenue lost when government-owned lands are exempt from property taxes. Specifically, the report must examine three key areas: (1) the payment rates for different types of natural resource lands, (2) whether the current payments adequately offset the tax revenue that would have been collected if these lands were privately owned, and (3) the existing funding for these payments and how additional land acquisitions might impact that funding. The report will be submitted to the chairs and ranking minority members of legislative committees responsible for natural resources and tax policy and finance, with the goal of recommending potential changes to the current PILT system.

Agriculture and Natural Resources

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1262&ssn=0&y=2025