Notwithstanding any provision of law to the contrary, the tract of land acquired by this act for the purpose of a permanent encampment and maneuvering ground for the militia of this state and all other land in Crawford, Kalkaska and Otsego counties now or hereafter owned by the state and controlled by the state military board shall not be subject to taxation, but the state, in lieu of taxes, shall pay an annual amount equal to $1.00 an acre for each acre or major fraction of an acre. The payment in lieu of taxes of this amount shall be paid annually in December to the treasurers of the respective townships, villages, and cities in the counties of Crawford, Kalkaska, and Otsego according to the number of acres of that land in the respective counties and the respective treasurers shall allocate, distribute, and account for the payments in the same manner and in the same proportions as the tax millage for that year has been allocated by the county tax allocation board. Payment of the amounts shall be made from appropriations made by the legislature for the operation of the military establishment and the officer having control and management of those lands under section 4 of this act shall cause to be prepared annually in the month of November and delivered to the respective treasurers of the townships, villages, and cities in those counties entitled to payments under this section a complete list of all lands in the several townships, villages, and cities and the acreage therein upon which payment is to be made pursuant to this section. A copy of the lists shall be furnished to the county treasurer.