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2021-2027 Public Land Strategy

Payment in lieu of taxes - PILT

The means by which the DNR acquires the land it manages plays a key role in determining which type of Payment in Lieu of Taxes (PILT) are paid on the property. PILT is statutorily required to be made by the state of Michigan to local units of government for public land that is managed by the DNR and for privately owned land retained for long-term timber production. Lands administered by the DNR are the only state-managed lands on which PILT is required to be paid. No other state agency is responsible for paying PILT on the lands it administers. PILT payments are made from line-item appropriations in the Department of Treasury appropriations act and the School Aid Act. The types of PILT payments are divided into three categories: swamp and tax-reverted lands, purchased lands and Commercial Forest Act lands. The funding source for PILT payments depends on which PILT category the land falls into and ranges from the state General Fund to restricted funds such as the Game and Fish Protection Fund. Likewise, the amount of PILT paid also depends on the PILT category of the land with purchased lands having the highest PILT requirement at the full assessed tax rate, with the exception of the state education tax, and Commercial Forest Act lands having the lowest rate. The PILT payments are distributed to each county and township. (see Appendix O).

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