At a quick glance, the headline was worth little more than a shrug: “Clark County gets $1,330 from Interior Department.” Yet the latest payment in lieu of taxes to the local county provides an opportunity to examine an issue that is of national importance and resonates particularly loudly in Western states.
That is because the bureaucratic wrangling that leads to the payments touches upon growing complaints about federal ownership of land, efforts by some people to have that land turned over to states, and self-determination by the people of the Western United States. While the current system is somewhat convoluted, a close review reveals that it is preferable to the alternative.
By way of quick explanation, the payments are made annually to counties or states where the federal government owns land. Federally owned land is not subject to local property taxes — and typically generates little revenue — and the payments are designed to compensate jurisdictions for that loss of tax revenue. As the U.S. Department of the Interior explains, “payments are one of the ways the federal government can fulfill its role of being a good neighbor to local communities.”
In Clark County, such neighborliness is akin to a pat on the back or a friendly wave. But elsewhere, such as Skamania County, it is essential to keeping the county on its feet. More than 85 percent of Skamania County is owned by the federal government — primarily the Gifford Pinchot National Forest — and the county this year is receiving $306,000 from the U.S. Department of the Interior. Nationally, this year’s payments amount to about $452 million, with most of that going to Western states.
As Interior Secretary Sally Jewell said: “Rural communities contribute significantly to our nation’s economy, food and energy supply, and help define the character of our diverse and beautiful country. These investments often serve as a lifeline for local communities as they juggle planning and paying for basic services like public safety, housing, social services and transportation.”
Understandably, not everybody is on board with the payment in lieu of taxes program, which was established in 1976. Congress delayed approval of this year’s funds — which are defined by statute but remain voluntary — and that had officials in counties such as Skamania pondering extensive budget cuts for the upcoming fiscal year.
All of that serves as background for the larger issue — federal ownership of lands. According to the Congressional Research Service, 28.5 percent of Washington is owned by the federal government; in Oregon, the number is 52.9 percent.
And while it has become popular in some circles to decry this situation as though the government is an entity separate from the people, the fact is that when land is owned by the federal government, it is owned by the public. Gifford Pinchot National Forest is owned by the people of the United States; Mount Rainier National Park is owned by the people; Olympic National Park is owned by you and your neighbors. And by having the federal government hold these lands in trust for the benefit of all, it is easier to preserve and protect such national treasures.
The alternative, as some would prefer, is to have states or local jurisdictions control the land. Would that mean that Skamania County could sell the Gifford Pinchot to private developers? Would it mean the state of Washington could clear-cut Olympic National Park? Given those scenarios, payment in lieu of taxes seems like a reasonable solution.
