SALT LAKE CITY — As chair of the Salt Lake chapter of the environmental group Latter-day Saint Earth Stewardship, Mike Maxwell has heard people's gripes about churches and watering big, green lawns.
"I hear that complaint frequently, yes, and I think it’s a very valid complaint," he told FOX 13 News in a recent interview. "I will say to the Church’s credit, they’ve done a lot of things to work on water issues in Utah."
The group, made up of Latter-day Saints and others who care about the environment, work on sustainability projects around the globe.
"Our chapter in the Philippines works on mangrove restoration," Maxwell said. "In Utah? We’re working on Great Salt Lake restoration."
Maxwell is supportive of looking into an idea that potentially could help the Great Salt Lake and other parts of Utah dealing with water crisis by introducing a new way for untaxed entities to voluntarily contribute. It's called "Payment In Lieu of Taxes," sometimes known as "PILOT" or "PILT."
"I think they should talk about it. I don’t think there’s any reason not to explore that," he said.
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The idea has been floated in reports and recommendations to lawmakers on Utah's Capitol Hill in dealing with the Great Salt Lake. The lake's declines present an ecological and economic crisis for the state including reduced snowpack (as much as 95% of the state's drinking water supply is tied to it), dust storms and impacts to public health and wildlife.
People pay a monthly water bill, but a large part of water use is actually covered by property taxes. But nonprofit entities like churches, schools and public golf courses do not pay property taxes. So critics complain it's essentially "free water" when everyone is being asked to conserve in Utah's ongoing drought.
Data compiled by the Utah State Auditor in 2023 found that "private untaxed entities" hold more than $9 billion in properties across the Great Salt Lake Basin alone. Religious institutions were the largest with $6.2 billion, followed by universities at $1.5 billion. Hospitals and other charities each hold roughly a half-billion in properties.
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Here's where "PILT" could come in.
"Entities can voluntarily come up a payment, a fee that they’re willing to pay into this kind of, I don’t want to say 'greater good,' but paying their share," said Candice Hasenyager, the director of Utah's Division of Water Resources.
PILT, known as PILOT in other states, has been used successfully to pay for infrastructure needs. Boston, for example, has utilized it for years and is reporting success. Entities that voluntarily do a PILT also get some kind of credit for it.
A report by the Great Salt Lake Strike Team — an entity made up of government officials, researchers from Utah State University, the University of Utah and other experts — noted that public golf courses do not pay property taxes "and as a result do not contribute to water infrastructure even though they are large water users."
"Salt Lake County alone has 16 public golf courses with a total property value of nearly $90 million. Implementing a PILOT program or a tee-time fee could be an equitable way to generate revenue that will benefit Great Salt Lake," the strike team said in a document released last year.
Brian Steed, the Great Salt Lake Commissioner appointed by Utah's political leaders with saving the lake, said there are a lot of nonprofit water users, including government, that could be impacted by PILT.
"I think it’s worth the discussion to see how we can incentivize more people to bring resources to the table to solve a problem that’s going to affect all of us," he said.
Hasenyager said information about the concept of PILT has been given to members of the Utah State Legislature along with other ideas, but "a specific study on what a voluntary payment in lieu of tax program could look like in Utah could be really beneficial." This year, lawmakers passed a bill based on other recommendations made by water policy officials clearing the way for tiered water rates across the state. The more you use, the more you will pay.
In response to FOX 13 News' inquiries on the idea of PILT, some lawmakers on Utah's Capitol Hill said it is worth at least exploring as a study item in their interim sessions. Beyond helping the Great Salt Lake with a cash infusion to acquire water from water rights holders, PILT payments could fund critical infrastructure needs, Hasenyager noted.
But entities that could ultimately end up making PILT payments are so far reluctant to weigh in. The Catholic Diocese of Salt Lake City did not respond to a request for comment. The Episcopal Diocese of Utah said it would need to look into the concept before commenting. Salt Lake City said it would also need more information (though city code appears to have allowed for some kind of a PILT mechanism since 1990).
The Church of Jesus Christ of Latter-day Saints — perhaps the single largest nonprofit property owner in Utah — declined to comment to FOX 13 News on the concept of PILT. However, the Church pointed to sustainability efforts it has made recently to be more water-wise, including installing new smart timers for sprinklers and changes chapel landscaping. In Salt Lake City, some churches have had turf ripped out and replaced with desert-friendly gardens.
"We are all going to be part of the solution of Great Salt Lake. That involves every one of us. Not just big institutions, but also individual homeowners," Steed said. "We’re all going to have to be more serious about how we use water."
This article is published through the Great Salt Lake Collaborative, a solutions journalism initiative that partners news, education and media organizations to help inform people about the plight of the Great Salt Lake—and what can be done to make a difference before it is too late. Read all of our stories at greatsaltlakenews.org.
