Senate Bill S.F. No. 1262 mandates that the Commissioner of Natural Resources, in collaboration with other commissioners and important stakeholders, must prepare a detailed report by December 1, 2026. This report will evaluate the current Payment in Lieu of Taxes (PILT) system applied to natural resource lands in Minnesota. Specifically, the report should include analysis of payment rates, evaluate if these payments sufficiently compensate local governments when compared to possible tax revenues if lands were privately held, and examine the funding for these payments. The goal is to potentially revise the PILT system to ensure fair compensation to local governments and explore the financial impacts of acquiring additional land. The findings will be shared with legislative committees responsible for natural resources and tax policy.