§497c Ski Area Permit Rental Charge

Summary

The Secretary of Agriculture must charge a rental fee for all ski area permits on National Forest land. For new permits the fee is set by a formula: take money from lift tickets and ski school sales, multiply that by the percent of ski lifts/slope transport that are on National Forest land, then add money from year‑round businesses on forest land (like lodging, food, rentals, parking). That gives the adjusted gross revenue. The fee is a sliding rate applied to that total: 1.5% on the first $3,000,000, 2.5% on $3,000,000–$15,000,000, 2.75% on $15,000,000–$50,000,000, and 4.0% on the amount over $50,000,000. If a permit was issued under older laws, it follows its old fee method unless the permit holder chooses the new formula. If a ski area is partly on Forest land, the percent of slope transport feet on Forest land is used (per the Forest Service manual as of January 1, 1992); Nordic trail revenue is counted in proportion to trails on Forest land. The adjusted gross revenue brackets are changed each year by the national Consumer Price Index. The fee is due June 1 each year and may be paid on a monthly, quarterly, annual, or other schedule agreed with the Secretary. The Secretary must give a standard form each year for calculating and reporting the fee. The formula took effect June 1, 1996 and covers money back to June 1, 1995, with special transition rules using the 1994–1995 base year for 1995–1998. Money from activities on land that is not National Forest land is not counted, except lift ticket, area pass, or ski school sales. “Revenue” means actual sales income and does not include equipment sales, refunds, rent paid to the permittee, sponsor payments, employee tips, or most complimentary or discounted items. If a permit has no qualifying revenue, the permit holder must pay a minimum of $2 per Forest acre under permit (or a percentage of appraised land value set by the Secretary). If a new fee would raise a permit holder’s charge by more than one‑half of one percent (0.5%) of their adjusted gross revenue, the increase is phased in over five years in roughly equal steps. Reissuing a similar permit is not treated as a major federal action under the National Environmental Policy Act for cost reasons. Lands inside permit boundaries are withdrawn from mining and mineral or geothermal leasing for the life of the permit and any renewals, and are restored to availability when the permit ends unless the Secretary asks otherwise. The Secretary must report to Congress no later than 3 years after November 12, 1996 and every 5 years after that on whether the rental system is fair and any suggested changes.