Requires the Treasurer to reimburse each town annually, no later than November 20, for state-owned land using a payment-in-lieu-of-taxes formula based on the land valuation reported by the Commissioner and the average statewide property-tax rate over the prior three years, applied per $1,000 of valuation.

Guarantees a hold-harmless so a town's payment cannot be less than the prior year's amount, except to reflect land removed from the program, and eliminates the term "reimbursement percentage."

Eliminates the reimbursement-percentage formula for payments in lieu of taxes on state-owned land and requires the State Treasurer to reimburse municipalities annually, by November 20, based on the value reported by the Commissioner multiplied by the average statewide property tax rate over the prior three years, with a hold-harmless floor no less than the prior year's payment except for removed parcels.

Directs the Department of Revenue and the Executive Office of Energy and Environmental Affairs to hold a public hearing within six months and, within one year, submit legislative recommendations to incorporate valuation of carbon storage, sequestration, and other ecosystem services of natural and working lands, considering targeted add-on reimbursements for permanently protected open space and forest cover, drinking water supply lands, cold-water fisheries, endangered or threatened species habitat, outdoor recreation, ecological integrity and landscape connectivity, municipalities with historically lower reimbursement percentages, and jurisdictions with high concentrations of state-owned land.

Overhauls payments in lieu of taxes for state-owned land by eliminating reimbursement percentages and basing reimbursements on a rate equal to the three-year average of annual property tax rates, determined by apportioning the statewide property tax levy over aggregate municipal valuations. Requires the State Treasurer to reimburse municipalities using reported valuations and guarantees no municipality receives less than the prior year's payment, except when land is removed from valuation.

Directs the Department of Revenue and the Executive Office of Energy and Environmental Affairs, within one year, to submit legislative recommendations to incorporate valuation of carbon storage, sequestration, and other ecosystem services and to strengthen reimbursements to advance natural and working lands goals, including consideration of additional payments for permanent open space, forest cover, specified ecological services, historically lower reimbursements, and higher tiers for municipalities with extensive state-owned land; mandates a public hearing within six months and a 30-day public comment period.