WA counties to receive nearly $30M in payments for tax-exempt federal land

A sign at one of the boundaries of the Okanogan-Wenatchee National Forest. (U.S. Forest Service)

Washington’s counties will share close to $30 million in payments this year from the U.S. government to compensate them for untaxable federal land within their boundaries.

The Interior Department last week announced $621.2 million in Payments in Lieu of Taxes for state and local governments nationwide. How much each place receives depends on the number of acres of federal land in the jurisdiction and its population.

“These funds are critical to the vast majority of our counties,” said Derek Young, interim executive director for the Washington State Association of Counties. He added that the importance of the money varies depending on how much federal acreage a county has and other factors.

“In some cases, it makes up a significant chunk of their general fund because they can’t collect property taxes on those lands,” Young said. 

He noted that between 60% and 80% of most Washington counties’ operating budgets are supported by property taxes, so when tens of thousands of acres are off the rolls it can be a hit. 

For example, Chelan County has almost 1.5 million acres covered by the PILT program. The county received the state’s largest payment – $3.9 million.

 

The 2024 budget plan Chelan County commissioners approved in December included $56.9 million in projected spending but also called for tapping reserves to cover a $2.6 million gap.

Other larger PILT recipients in Washington include Okanogan County ($3.3 million), Whatcom County ($2.4 million), and Jefferson County ($1.9 million) The smallest payment was to Thurston County – $1,520.

Overall, payments to counties in Washington will total $29.6 million. In 2023, the payments totaled $27.1 million

The payments are for land held by the Bureau of Land Management, Bureau of Reclamation, National Park Service, Fish and Wildlife Service, Forest Service, and Army Corps of Engineers.

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