To amend title 31, United States Code, to provide for additional payments in lieu of taxes for lands acquired by the United States Government for administration by the Bureau of Land Management, and for other purposes.

Amends Federal law to allow payments for five fiscal years after the acquisition of lands by the U.S. Government to be administered by the Secretary of the Interior (Secretary) through the Bureau of Land Management in addition to those made under the payment-in-lieu-of-taxes program. (Current law allows such additional payments for lands acquired for the National Park System or the National Forest Wilderness Areas.)

Requires the Secretary to: (1) review the status of the acquired lands during the fifth year of such payment and every tenth year thereafter, so long as the parcel remains in Federal ownership, to determine whether it should continue in such ownership and if the benefits of it outweigh the costs to local government; (2) develop criteria for making such determination; and (3) inform the unit of general local government having property tax jurisdiction over such parcel of the draft decision and the basis of the determination, prior to making a final decision pursuant to the review.

Requires an annual payment to be made to such local government in accordance with this Act and under specified conditions if the Secretary determines that the parcel should continue in Federal ownership.

Directs the Secretary to dispose of the parcel in accordance with the Federal Property and Administrative Services Act of 1949 if such parcel is no longer needed for Federal purposes.