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Orange Co. Joins Class-Action Suit To Recover Underpay For Federal Lands

By Yue Sun

Posted July 20, 2018

Hoosier National Forest in Orange County (Wikimedia Commons)

Orange County is joining a class-action lawsuit against the federal government seeking to recover its property tax losses from a federal program.

The federal government owns a large tract of non-taxable land in Orange County’s portion of the Hoosier National Forest. The county is supposed to receive Payments in Lieu of Taxes(PILT) for that land. They’re intended to help counties offset losses in property taxes with federal lands.

The county says it hasn’t received its compensation for 2015 through 2017.

Congress amended a statute regarding the payments in 2008 mandating full funding through 2014. But the recipients were underpaid for the three following years because of an insufficient appropriation from Congress.

Kane County, Utah filed a lawsuit in 2017 and made it a class action attempting to recover both its own underpayments and those of all other PILT recipients from 2015 through 2017.

Last December, a court ruled in favor of Kane County and certified the suit as a class action. The court ordered that the official notice be given to all other all PILT recipients.

Orange County elected to become a member of the class-action suit so it could receive the deficient payment throughout that time period, County Attorney James Tucker says.

“I think any county that has substantial federally-owned real estate will participate,” he says.

Tucker says there are no costs associated with the county participating in the suit.

“You can’t lose on the deal,” he says.

So far, counties from 48 states have opted in, according to Smith, Currie and Hancock, the law firm handling the suit.

That includes six Indiana counties: Crawford County, Dubois County, Huntington County, Miami County, Orange County and Perry County.

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Orange Co. Joins Class-Action Suit To Recover Underpay For Federal Lands

By Yue Sun

Posted July 20, 2018

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