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Minnesota budget plan cuts one-third of payments in lieu of taxes

Payments in lieu of taxes to local governments offset property tax losses due to public land ownership in counties. (Stock photo)

Looking down the barrel of an even larger budget deficit than originally projected in the fall of 2024, Gov. Tim Walz revised his initial budget proposal by carving more out of pockets in a new proposed state budget.
One of the new proposed cuts is to payments in lieu of taxes to local governments (counties, townships), now slated to see a potential $17 million reduction, or a decrease by about 34% over the next biennium. PILT is paid to offset property tax losses due to public land ownership in counties.

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