Feds will give $13.5 million to state in lieu of tax revenue

Suzanne Struglinski

Thursday, June 17, 2004 | 9:25 a.m.

WASHINGTON -- The federal government will transfer $13.5 million to Nevada today to offset property tax revenue the state loses because of the federal land in the state.

This is $362,434 more than the state received last year. Counties may use the money for police and fire departments, road maintenance or other government programs it would normally pay for with tax money.

"No state has more of its land owned by the federal government than Nevada, and these payments are extremely important to our counties and their citizen," Sen. John Ensign, R-Nev., said. "This is better than finding extra money under your couch cushions,'

The administration has requested $266 million for fiscal year 2005, which begins Oct. 1, the largest request for the Payment In Lieu of Tax program, known as PILT, Ensign said. The state usually receives money annually from the program but the amount can vary depending on what Congress approves.

Ensign and Sen. Harry Reid, D-Nev., have co-sponsored a bill that would make PILT payments permanent, removing it from the annual appropriations process so the amount could not change each year.