Commissioners adopt resolution opposing proposal to reduce DNR tax

Members of the Presque Isle County Board of Commissioners, at the insistence of treasurer Pat Cornett, unanimously adopted a resolution opposing proposed changes to the Payment in Lieu of Taxes program. ?What we are asking is that all the boards of commissioners endorse this resolution, opposing changes to the way the state pays its taxes,? Cornett said before the vote.

The state of Michigan executive budget recommendation on the payments in lieu of taxes (PILT) in March, included the recommendation that property purchased by the Department of Natural Resources be treated the same as swampland for tax purposes, at the rate of $2 per acre. That would affect more than one million acres of state-purchased land in the state.

A dollar each would go to the townships and county, however, non-townships or non-county related millages for the six-mill State Education Tax, Intermediate School Districts, local school boards, airport authorities, library districts, etc. would receive nothing under the plan.

The DNR currently owns 7,323.49 acres in Presque Isle County with a total tax bill of $63,879. The proposal could cost the county and other local units of government $3,366 (county and senior citizens only).

THE CONCERN from public officials is the proposed cuts in PILT payments would jeopardize public services provided to state-owned lands and also could force higher tax rates on individual taxpayers. Chairman Allan Bruder said he attended several meetings of the Northern Michigan Association of Counties and they, too, are against the plan. ?Everyone is dead against making this change,? said Bruder at the June 11 county board meeting. ?I guess they waxed every county except for two in the state.? The resolution states the county ?opposes the administration?s proposal for PILT funding and strongly urges the legislature to maintain the current process of DNR PILT payments.? Cornett told the commissioners about a Senate bill that was introduced by Michelle McManus to ensure the county doesn?t see a reduction.

?The only problem I have with the bill itself is it allows townships, counties, cities and schools to forgive the tax obligation of the DNR in future land-sale negotiations,? she said. Cornett believes it would open the door for the DNR to continue to buy property at count

y land sales, as well as sales the DNR is in control of, and not have to pay the proper taxes. ?IT ALSO SAYS to remove the DNR from paying the state education tax,? said Cornett. ?If they are going to buy land that is currently part of our tax base and the state education tax is part of the state?s tax base, to allow them to not have them do that is opening the door for problems.? Cornett said the DNR has one fund for buying land and another to pay taxes, but from what she has been told, there is money left in the DNR tax account. Commissioner Don Field agreed with Cornett and suggested the DNR stop buying land.

The DNR faces increasing pressure in paying for local taxes when no other departments in state government have to pay taxes. Copies of the resolution will be forwarded to the Governor?s office, State Sen. Jason Allen, State Rep. Matt Gillard, and the Michigan Association of Counties.