Reid urged distribution of Nevada’s $23 million in a letter last week to Interior Secretary Salazar

June 29, 2010

Washington, DC—Nevada Senator Harry Reid today announced that Nevada has received much-needed Payment in Lieu of Taxes (PILT) funds after he and other congressional representatives from western states sent a letter to Department of Interior Secretary Ken Salazar urging him to distribute the funds on the previously-scheduled release date.  The Department of Interior announced two weeks ago that payments to local governments would be delayed until the end of July due to processing problems.

“PILT payments are crucial for local governments in Nevada to provide essential services,” Reid said.  “I appreciate Secretary Salazar’s quick response to our request to distribute the funds as soon as possible.  Counties in rural Nevada would take a big hit without the nearly $23 million they will receive this year to improve areas of service like education, law enforcement, and infrastructure.”

In 2008, Reid spearheaded the legislation that fully funds PILT to ensure that Nevada’s rural communities have sufficient funding for important public programs.  With 87 percent of Nevada’s land owned by the federal government, counties rely on PILT payments for essential services and improvements in several areas.  Senator Reid’s legislation fully funds PILT through 2012.  Additional funding will be needed to continue the program after 2012.

PILT is paid to counties to compensate for the loss of tax revenue due to federal land ownership. Traditionally, the payments are made by June 30, in time for the start of the fiscal year for most counties. The formula used to compute the payments is based on population levels, receipt sharing payments, and the amount of Federal land within an affected county. While the Interior Department distributes PILT to 49 states, plus the District of Columbia, Puerto Rico, Guam, and the Virgin Islands, much of the money goes to counties in western states where the federal government owns large tracts of land. The program was created in 1977.

The breakdown of PILT funds by county is as follows:

CARSON CITY                     $113,938

CHURCHILL COUNTY      $2,088,531

CLARK COUNTY                $3,094,961

DOUGLAS COUNTY          $617,822

ELKO COUNTY                   $2,648,541

ESMERALDA COUNTY     $100,926

EUREKA COUNTY             $275,208

HUMBOLDT COUNTY       $1,641,405

LANDER COUNTY             $806,114

LINCOLN COUNTY            $772,903

LYON COUNTY                   $1,896,456

MINERAL COUNTY           $639,726

NYE COUNTY                      $2,810,172

PERSHING COUNTY          $905,837

STOREY COUNTY              $34,790

WASHOE COUNTY             $3,197,884

WHITE PINE COUNTY       $1,107,990

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