Prairie Cnty, v. United States

Prairie County, Montana, and Greenlee County, Arizona sought additional payments under the Payment in Lieu of Taxes Act (PILT), 31 U.S.C. 6901–6907. PILT was enacted to “compensate[ ] local governments for the loss of tax revenues resulting from the tax-immune status of federal lands located in their jurisdictions, and for the cost of providing services related to these lands” and directs the Department of the Interior to “make a payment for each fiscal year to each unit of general local government in which entitlement land is located.” PILT provides two alternative formulas for calculating the amount of payment, but provides that “[n]ecessary amounts may be appropriated to the Secretary of the Interior to carry out this chapter. Amounts are available only as provided in appropriation laws.” During the years at issue, Congress did not appropriate sufficient funds to provide for full payments to all eligible local governments according to PILT formulas. Interior followed the relevant regulation and proportionally reduced PILT payments to each local government. The Claims Court dismissed. The Federal Circuit affirmed. The statute limits the government’s liability under PILT to the amount appropriated by Congress. View "Prairie Cnty, v. United States" on Justia Law