Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
By P.J. GLISSON
Bessemer — Members of the Gogebic County Board of Commissioners voted April 10 to undertake discussions with Watersmeet and Marenisco townships regarding how PILT funds are distributed.
The acronym PILT stands for “payment in lieu of taxes,” and representatives of the two townships approached commissioners with their related frustration in what they view as unfair allotments.
According to the U.S. Department of the Interior, “Payments in Lieu of Taxes are federal payments that help local governments offset losses in property taxes due to the existence of nontaxable federal lands within their boundaries.”
The DOI adds, “The original law is Public Law 94–565, dated Oct. 20, 1976. This law was rewritten and amended by Public Law 97–258 on Sept. 13, 1982, and codified as Chapter 69, Title 31 of the United States Code. The law recognizes the financial impact of the inability of local governments to collect property taxes on federally owned land.”
Marenisco Township Supervisor Bruce Mahler said that the situation hits his township hard.
“Marenisco is actually 60% owned by the federal government,” he said, adding that, nevertheless, his township provides services that benefit those federal properties.
For instance, Marenisco Township employs a full-time police chief and part-time deputies. It also has two fire departments and three fire halls, along with emergency services and five campgrounds and other boat or canoe landings.
“We’re expending dollars to provide service to the ONF, so we believe we should at least get a percent of the dollars,” said Mahler.
PILT dollars now go directly to county coffers, a situation that Watersmeet Township Supervisor Mike Rogers said was not the case in earlier years.
“Originally, all that money went to the townships,” he said, adding that the state changed the distribution network. “I know the county needs money, but so do we.”
“There’s really only two townships that have the majority of federal forest in Gogebic County,” said Watersmeet Township Treasurer Paul Kemppainen, referring to Watersmeet and Marenisco townships.
Moreover, he said, “We’re already providing the biggest share of taxes in the county. Between our two townships we provide 50% of the county’s revenue. We don’t feel we’re getting much in the way of service.”
“It’s an issue and I understand that,” said Board Chairman James Lorenson, who added that other areas are affected by the same problem.
He suggested that perhaps county officials could meet with township officials to discuss the matter in more detail.
“Mr. Mahler is right,” said Lorenson. “The forest service does a paltry job of reimbursing for the taxable value.”
Lorenson said that the county loses millions due to the current system.
Commissioner Daniel Siirila said housing values on the county’s eastern end, where Watersmeet and Marenisco lie, are significant.
Regarding a recent visit to that region, he said of houses there, “It blew me out of the water as to what revenue they are generating for the county. I feel for you.”
Commissioner George Peterson, who represents Watersmeet and Marenisco townships, added that commissioners need to know exactly where PILT money is going so that they know best how to manage it.
“A helping hand, in my opinion, is common sense,” he said, questioning what the county would do without Marenisco and Watersmeet townships.
By phone on Tuesday, Mahler was optimistic about the possibilities of cooperation, adding that commissioners seemed “receptive” to the presentation.
“We’re at least going to sit down and discuss it,” he said. “That’s something that hasn’t happened in the past.”
In other news at the meeting, Gogebic County Veterans Officer John Frello said the Ironwood City Commission will address the issue of his office having been denied funding by Ironwood City Manager Paul Anderson on the grounds that it does not fit in with related state law. Frello said he will attend that meeting, which he hopes brings “favorable results.”
Commissioners also:
—Upon presentation by Kathy Koval, the county’s equalization director, voted to approve the 2024 equalization report and 2024 valuations for Gogebic County and authorize related signatures.
—In separate votes, approved assessed values of residential, governmental, commercial and industrial lands, as well as properties designated for timber and agriculture.
—Voted to deny to Paul Linn a request for funding for the Iron Rangers, a newly formed youth baseball team. Linn said the new team is in addition to local Little League, “not a substitute” for it. He said most current members are from Ironwood, with a few from Hurley. Commissioners questioned the out-of-state membership status.
All votes were unanimous with all members present.
The board’s next regular meeting will be on April 24 at 5 p.m. in the Gogebic County Courthouse.