HB 2230 (companion bill SB 6080) expands a tribal property tax exemption created in 2014.

Legislation passed in 2014 that exempts tribes from paying property tax on tribally owned property used for economic development located outside of a reservation. Rather than paying property tax to a city, tribes pay “payment in lieu of taxes” (PILT) to compensate for local governments’ lost revenue. The 2014 exemption only applied to properties owned prior to March 2014 and sunsets in 2022. HB 2230 would eliminate the March 2014 restriction and the 2022 sunset.

We understand that some cities are concerned about the open-ended nature of the exemption and that the PILT is subject to being negotiated by the county and not the impacted city. The proponents have indicated that they believe local governments would actually benefit more from this exemption because they receive more funding from the PILT reimbursements.

Dates to remember

HB 2230 is scheduled for public hearing in the House Finance Committee on January 15.