PILT removed from Legacy bill

Did supporters of the Clean Water, Land and Legacy amendment intend for local governments to be reimbursed when land bought with Legacy funds is taken off local property tax rolls?

Rep. Ann Lenczewski (DFL-Bloomington) doesn’t think so. In the House Taxes Committee May 10 she successfully offered an amendment to strip HF1061, the Legacy funding bill, of its requirement to give local governments a payment in lieu of taxes, known as PILT. The committee approved the bill, as did the House Ways and Means Committee. The bill awaits action by the full House. It has no Senate companion.

Sponsored by Rep. Dean Urdahl (R-Grove City), the bill, as amended, would create a dedicated land management account. About 20 percent of the funds used for each Outdoor Heritage fund land purchase would be transferred into an interest-bearing account to pay for long-term land management costs, but not PILT.

Rep. Diane Loeffler (DFL-Mpls) said PILT is a larger issue that must be dealt with separately.

“Until we fix PILT, we shouldn’t have more communities making more than others. It’s not an issue to be dealt with through Legacy.”

Others said with the PILT provision removed, new land acquisitions will only add to a growing problem in Greater Minnesota, where more than half of the land is publicly-owned in some counties and not subject to property taxes.

“Let’s recognize the true costs of buying land,” said Rep. Denny McNamara (R-Hastings).

Committee members also weighed in on what would be the fairest way to split the $77 million dedicated for parks and trails in 2012-2013. Urdahl is proposing the Department of Natural Resources and the Metropolitan Council regional parks board would each get 40 percent, with the other

20 percent distributed statewide as competitive grants. The formula pits urban/suburban legislators against Greater Minnesota legislators. Amendments to change the formula to a 43-43-14 split were withdrawn after discussion.