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Forest Service: Little Assurance That Fair Market Value Fees Are Collected From Ski Areas

RCED-93-107 Published: Apr 16, 1993. Publicly Released: May 12, 1993.
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Highlights

Pursuant to a congressional request, GAO reviewed: (1) whether the Forest Service's graduated rate fee system (GRFS) generates fair-market value fees for ski resorts operating on its land; (2) whether a ski industry-developed fee system would collect fair-market value fees; and (3) how the ski industry's fee system compares with GRFS.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
In the event that Congress passes legislation revising the Forest Service's ski fee system, it should ensure that the ski fees established are based on fair-market value. Furthermore, legislation should provide for periodic updates of the fees to reflect any changes in economic conditions.
Closed – Implemented
In November 1996, the President signed into law the Omnibus Parks and Public Lands Act of 1996. Title VII of that act prescribes a fee schedule for ski areas on lands administered by the Forest Service. This fee system will be more simple to administer than the existing fee system of the Forest Service. The new system was designed to collect a similar amount of fees service-wide as the old system. As such, it is not likely to result in an increase in fees paid to the government

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the Chief, Forest Service, to take advantage of the current interest in developing a simplified ski fee system by developing a system that not only is simpler but also will ensure that the government receives fees based on fair-market value.
Closed – Not Implemented
In 1996, the President signed into law the Omnibus Parks and Public Lands Act of 1996. Title VII of that act prescribes a fee schedule for ski areas on lands administered by the Forest Service. This fee system will be more simple to administer than the existing fee system of the Forest Service. The new system was designed to collect a similar amount of fees service-wide as the old system. As such, it is not likely to result in an increase in fees paid to the government

Full Report

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Topics

Administrative costsContractor paymentsFair market valueFinancial managementGovernment collectionsLand managementNational recreation areasPublic landsUser feesRecreation