Times Observer file photo A bill before the state Senate would see the first increase in several years to the payments that local governments with state-owned land receive, such as here at Chapman State Park.

A piece of legislation currently in the state Senate could provide a financial boost to some municipalities in Warren County.

Sen. Crush Dush has put forward SB 225, which would increase the amount that the Department of Conservation and Natural Resources, Pennsylvania Game Commission and Pennsylvania Fish and Boat Commission pay to school districts, counties and municipalities for the land they owe.

Those agencies pay the local governing bodies a PILOT, or payment in lieu of taxes.

The bill as currently before the Appropriations Committee would increase the rate for DCNR-owned land Chapman State Park and Bureau of Forestry in Warren County – from $2 to $2.85 per acre.

Property owned by the Game Commission – state game lands – and Fish and Boat Commission – like the Starbrick boat launch – would increase from $1.20 to $1.70 per acre.

Some of the funding comes from slot machine revenue.

The bill also includes future adjustments based on the Consumer Price Index.

“The primary source of local revenue for school districts is the property tax. However, state-owned forest, game and recreation lands are exempt from local property taxation,” Sen. Dush, who serves a district including McKean and Elk counties, said in a legislative memo.

“To make up for the exemption of this land for taxation, the Commonwealth makes a payment to local governments for this land. These payments in lieu of taxes are set at a flat rate per acre by state law last updated in 2016.”

He outlined how these payments hit the rural parts of the state.

“This especially impacts rural Pennsylvania, where a significant portion of the real estate is state-owned forest, game, and recreation lands,” Dush wrote. “When those school districts are forced to increase property taxes for increasing mandated costs such as pensions, special education and charter school tuition, the impact is largely on homeowners because they cannot increase the (funding) they receive from the state.

“Ensuring that the rate for (funding) is annually adjusted will reduce the burden on homeowners when local governments need to increase local revenue via property taxes by ensuring that local governments are more fairly compensated for the state-owned lands which are exempt from taxation.”

If enacted, the adjustments would be made starting in 2024.