[Code of Federal Regulations] [Title 43, Volume 2] [Revised as of October 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 43CFR1881.31] [Page 48] TITLE 43--PUBLIC LANDS: INTERIOR CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR PART 1880_FINANCIAL ASSISTANCE, LOCAL GOVERNMENTS--Table of Contents Subpart 1881_Payments in Lieu of Taxes Sec. 1881.31 How does BLM calculate section 6904 payments? BLM calculates payments by determining 1% of the fair market value of the purchased land and comparing the result to the amount of real estate taxes paid on the land in the year prior to Federal acquisition. The payment to qualified units of general local government will be the lesser of the two. Payments to Local Governments for Interest in Lands in the Redwood National Park or Lake Tahoe Basin (31 U.S.C. 6905)