County joins class action PILT lawsuit

The Lincoln County Commission on June 11 unanimously agreed to join a class action lawsuit that seeks to recover additional payments in lieu of taxes (PILT) for fiscal years 2015, 2016 and 2017 — years in which a federal claims court has determined insufficient funds were paid.

Commissioner Jerry Bennett said the underpayment amounted to an estimated $25,373 for all three years, citing calculations provided by the Montana Association of Counties.

Participation would cost the county nothing out-of-pocket, but legal fees might be deducted from any proceeds awarded to the county, according to a notice from the U.S. Court of Federal Claims in Washington, D.C.

By opting in, Lincoln County gives up its right to sue the federal government on its own for the same claims made in the lawsuit.

Payments in lieu of taxes, authorized in 1976, are payments the federal government makes to local governments to help offset losses in property taxes due to non-taxable Federal lands within their boundaries.

Lincoln County has received $7,063,349 in PILT funds since June 2009. The money can be used for matching grants, unforeseen legal costs and other items.

The class action lawsuit arose from legal action Kane County, Utah brought against the United States. The U.S. Court of Federal Claims subsequently “allowed, or ‘certified,’ a Class Action Lawsuit against the United States to recover amounts which the Court has determined that the (federal) government was required to pay units of local government … but did not pay in full in fiscal years 2015, 2016 and 2017,” according to the court notice.

While the court has not yet determined how much the federal government underpaid local governments during those three fiscal years, the notice states that legal counsel for both the plaintiffs and the federal government so far “have agreed on the amount of the underpayment in fiscal years 2015 and 2016.”

According to the court notice, Alan Saltman and the firm of Smith, Currie and Hancock were determined by the court to be “qualified” to represent all class members in the legal proceedings, though any class member would be allowed to hire its own representation at its own direct expense.

The commissioners did not indicate the need or desire to hire representation on behalf of the county.