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activities located on Forest Service lands (e.g., restaurants, ski 

 rental shops, and overnight lodging) . 



Since ski areas are frequently a mix of both private and 

 federal lands, both GRFS and the fee system proposed in H.R. 1527 

 would determine the percentage of private and federal lands 

 involved, called the slope-transport-feet percentage. This 

 percentage is used to determine the portion of sales that would be 

 subject to fee calculations. 



In our 1993 report on ski fees,^° we recommended that ski fees 

 be simpler and that they reflect fair market value. The fee system 

 in H.R. 1527 would be simpler to administer than GRFS. This 

 simplicity would benefit both the Forest Service and individual ski 

 areas. However, the fee system proposed in H.R. 1527 has the same 

 rates as those the ski industry proposed in 1993. As we reported 

 at that time, those rates were not designed to reflect fair market 

 value but to generate fees comparable to the fees collected under 

 GRFS. Forest Service officials acknowledge that they do not know 

 whether the fees collected under GRFS reflect fair market value. 

 As such, any fee system designed to collect comparable fees will 

 likewise not ensure that fair market value is received as required 

 by the Ski Area Permit Act of 1986. 



Mr. Chairman, this concludes our statement. We would be glad 

 to respond to any questions that you or other members of the 

 Subcommittee may have. 



°GAO/RCED-93-107. 



12 



