Title 16ConservationRelease 119-73not60

§497c Ski Area Permit Rental Charge

Title 16 › Chapter 2— NATIONAL FORESTS › Subchapter I— ESTABLISHMENT AND ADMINISTRATION › § 497c

Last updated Apr 5, 2026|Official source

Summary

The Secretary of Agriculture must charge a rental fee for all ski area permits on National Forest System land. The fee is based on a ski area’s sales from lift tickets and year‑round ski passes plus ski school income, multiplied by the share of slope transport (lifts, etc.) that is on national forest land, and then adding gross year‑round income from on‑forest ancillary businesses (like lodging, food, rentals, parking). That gives the adjusted gross revenue (AGR). The rental fee is then calculated by applying these rates to AGR: 1.5 percent of the portion under $3,000,000; 2.5 percent of the portion from $3,000,000 to $15,000,000; 2.75 percent of the portion from $15,000,000 to $50,000,000; and 4.0 percent of the portion over $50,000,000. If a ski area is only partly on Forest Service land, the slope‑share is computed as described in the Forest Service Manual in effect on January 1, 1992. Nordic trail income is included or excluded based on the share of trails on national forest land. AGR brackets are adjusted each year by the national Consumer Price Index. No later than 3 years after November 12, 1996, and every 5 years after that, the Secretary must report to the Senate Committee on Energy and Natural Resources and the House Committee on Resources whether the fee is producing fair market value and recommend changes if needed. The fee is due June 1 each year. The permittee may pay monthly, quarterly, yearly, or on another schedule agreed with the Secretary; unless changed, the schedule in effect before November 12, 1996 remains in force. The Secretary must give a standard form and worksheets each year for calculations. The fee system became effective June 1, 1996 and covers money made back to June 1, 1995; paid charges for June 1, 1995–June 1, 1996 are credited. For 1995–1996, 1996–1997, and 1997–1998 permit years, the permittee pays either the 1994–1995 base year charge or the new calculation, whichever is higher. Income from operations on non‑national forest land is excluded. “Revenue” and “sales” mean actual money received and do not include equipment sales, refunds, rent from sublessees, sponsor event contributions, employee tips, employee lift tickets, or discounts (except bartered goods or promotional complimentary lift tickets). If a permittee has no qualifying revenue, they must pay at least $2 per national forest acre under permit or a percent of appraised land value set by the Secretary. If the new fee would raise a permittee’s charge by more than 0.5 percent of their AGR, the increase is spread over five years in roughly equal steps. Reissuing a permit for similar activities is not a major Federal action under NEPA. Lands inside permit boundaries are withdrawn from mining and mineral/geothermal leasing laws for the permit’s full term and are automatically restored to those laws when the permit ends unless the Secretary asks otherwise.

Full Legal Text

Title 16, §497c

Conservation — Source: USLM XML via OLRC

(a)The Secretary of Agriculture shall charge a rental charge for all ski area permits issued pursuant to section 3 of the National Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b), the Act of March 4, 1915 (38 Stat. 1101, chapter 144; 16 U.S.C. 497), or the 9th through 20th paragraphs under the heading “SURVEYING THE PUBLIC LANDS” under the heading “UNDER THE DEPARTMENT OF THE INTERIOR” in the Act of June 4, 1897 (30 Stat. 34, chapter 2), on National Forest System lands. Permit rental charges for permits issued pursuant to the National Forest Ski Area Permit Act of 1986 shall be calculated as set forth in subsection (b). Permit rental charges for existing ski area permits issued pursuant to the Act of March 4, 1915, and the Act of June 4, 1897, shall be calculated in accordance with those existing permits: Provided, That a permittee may, at the permittee’s option, use the calculation method set forth in subsection (b).
(b)(1)The ski area permit rental charge (SAPRC) shall be calculated by adding the permittee’s gross revenues from lift ticket/year-round ski area use pass sales plus revenue from ski school operations (LT+SS) and multiplying such total by the slope transport feet percentage (STFP) on National Forest System land. That amount shall be increased by the gross year-round revenue from ancillary facilities (GRAF) physically located on national forest land, including all permittee or subpermittee lodging, food service, rental shops, parking and other ancillary operations, to determine the adjusted gross revenue (AGR) subject to the permit rental charge. The final rental charge shall be calculated by multiplying the AGR by the following percentages for each revenue bracket and adding the total for each revenue bracket:
(A)1.5 percent of all adjusted gross revenue below $3,000,000;
(B)2.5 percent for adjusted gross revenue between $3,000,000 and $15,000,000;
(C)2.75 percent for adjusted gross revenue between $15,000,000 and $50,000,000; and
(D)4.0 percent for the amount of adjusted gross revenue that exceeds $50,000,000.
(2)In cases where ski areas are only partially located on national forest lands, the slope transport feet percentage on national forest land referred to in this subsection shall be calculated as generally described in the Forest Service Manual in effect as of January 1, 1992. Revenues from Nordic ski operations shall be included or excluded from the rental charge calculation according to the percentage of trails physically located on national forest land.
(3)In order to ensure that the rental charge remains fair and equitable to both the United States and the ski area permittees, the adjusted gross revenue figures for each revenue bracket in paragraph (1) shall be adjusted annually by the percent increase or decrease in the national Consumer Price Index for the preceding calendar year. No later than 3 years after November 12, 1996, and every 5 years thereafter the Secretary shall submit to the Committee on Energy and Natural Resources of the United States Senate and the Committee on Resources of the United States House of Representatives a report analyzing whether the ski area permit rental charge required by this section is returning a fair market value rental to the United States together with any recommendations the Secretary may have for modifications of the system.
(c)The rental charge set forth in subsection (b) shall be due on June 1 of each year and shall be paid or prepaid by the permittee on a monthly, quarterly, annual or other schedule as determined appropriate by the Secretary in consultation with the permittee. Unless mutually agreed otherwise by the Secretary and the permittee, the payment or prepayment schedule shall conform to the permittee’s schedule in effect prior to November 12, 1996. To reduce costs to the permittee and the Forest Service, the Secretary shall each year provide the permittee with a standardized form and worksheets (including annual rental charge calculation brackets and rates) to be used for rental charge calculation and submitted with the rental charge payment. Information provided on such forms shall be compiled by the Secretary annually and kept in the Office of the Chief, United States Forest Service.
(d)The ski area permit rental charge set forth in this section shall become effective on June 1, 1996 and cover receipts retroactive to June 1, 1995: Provided, That if a permittee has paid rental charges for the period June 1, 1995, to June 1, 1996, under the graduated rate rental charge system formula in effect prior to November 12, 1996, such rental charges shall be credited toward the new rental charge due on June 1, 1996. In order to ensure increasing rental charge receipt levels to the United States during transition from the graduated rate rental charge system formula to the formula of this section, the rental charge paid by any individual permittee shall be—
(1)for the 1995–1996 permit year, either the rental charge paid for the preceding 1994–1995 base year or the rental charge calculated pursuant to this section, whichever is higher;
(2)for the 1996–1997 permit year, either the rental charge paid for the 1994–1995 base year or the rental charge calculated pursuant to this section, whichever is higher; and
(3)for the 1997–1998 permit year, either the rental charge for the 1994–1995 base year or the rental charge calculated pursuant to this section, whichever is higher.
(e)Under no circumstances shall revenue, or subpermittee revenue (other than lift ticket, area use pass, or ski school sales) obtained from operations physically located on non-national forest land be included in the ski area permit rental charge calculation.
(f)To reduce administrative costs of ski area permittees and the Forest Service the terms “revenue” and “sales”, as used in this section, shall mean actual income from sales and shall not include sales of operating equipment, refunds, rent paid to the permittee by sublessees, sponsor contributions to special events or any amounts attributable to employee gratuities or employee lift tickets, discounts, or other goods or services (except for bartered goods and complimentary lift tickets offered for commercial or other promotional purposes) for which the permittee does not receive money.
(g)In cases where an area of national forest land is under a ski area permit but the permittee does not have revenue or sales qualifying for rental charge payment pursuant to subsection (a), the permittee shall pay an annual minimum rental charge of $2 for each national forest acre under permit or a percentage of appraised land value, as determined appropriate by the Secretary.
(h)Where the new rental charge provided for in subsection (b)(1) results in an increase in permit rental charge greater than one-half of 1 percent of the permittee’s adjusted gross revenue as determined under subsection (b)(1), the new rental charge shall be phased in over a five-year period in a manner providing for increases of approximately equal increments.
(i)To reduce Federal costs in administering the provisions of this section, the reissuance of a ski area permit to provide activities similar in nature and amount to the activities provided under the previous permit shall not constitute a major Federal action for the purposes of the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.).
(j)Subject to valid existing rights, all lands located within the boundaries of ski area permits issued prior to, on or after November 12, 1996, pursuant to authority of the Act of March 4, 1915 (38 Stat. 1101, chapter 144; 16 U.S.C. 497), and the Act of June 4, 1897, or the National Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b) are hereby and henceforth automatically withdrawn from all forms of appropriation under the mining laws and from disposition under all laws pertaining to mineral and geothermal leasing and all amendments thereto. Such withdrawal shall continue for the full term of the permit and any modification, reissuance, or renewal thereof. Unless the Secretary requests otherwise of the Secretary of the Interior, such withdrawal shall be canceled automatically upon expiration or other termination of the permit and the land automatically restored to all appropriation not otherwise restricted under the public land laws.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Act of
March 4, 1915, referred to in subsecs. (a) and (j), is act Mar. 4, 1915, ch. 144, 38 Stat. 1086. For complete classification of this Act to the Code, see Tables. Act of
June 4, 1897, referred to in subsecs. (a) and (j), is act
June 4, 1897, ch. 2, 30 Stat. 11. For complete classification of this Act to the Code, see Tables. The National Forest Ski Area Permit Act of 1986, referred to in subsecs. (a) and (j), is Pub. L. 99–522, Oct. 22, 1986, 100 Stat. 3000, which enacted section 497b of this title and provisions set out as a note under section 497b of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 497b of this title and Tables. The National Environmental Policy Act of 1969, referred to in subsec. (i), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see

Short Title

note set out under section 4321 of Title 42 and Tables.

Amendments

2000—Subsec. (b)(3). Pub. L. 106–176, § 117(1), substituted “required by this section” for “legislated by this Act”. Subsec. (d). Pub. L. 106–176, § 117(2), in introductory provisions, substituted “formula of this section” for “formula of this Act”, in pars. (1) to (3), substituted “this section” for “this Act”, and, in concluding provisions, inserted “adjusted gross revenue for the” before “1994–1995 base year” and substituted “this section” for “this Act”. Subsec. (f). Pub. L. 106–176, § 117(3), inserted “offered for commercial or other promotional purposes” after “complimentary lift tickets”. Subsec. (i). Pub. L. 106–176, § 117(4), substituted “this section” for “this Act”.

Statutory Notes and Related Subsidiaries

Change of Name

Committee on Resources of House of Representatives changed to Committee on Natural Resources of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.

Reference

Citations & Metadata

Citation

16 U.S.C. § 497c

Title 16Conservation

Last Updated

Apr 5, 2026

Release point: 119-73not60