§8167 — Title 38 Veterans' Benefits | U.S. Code

§8167 Exemption from State and local taxes

Title 38 › Part PART VI— - ACQUISITION AND DISPOSITION OF PROPERTY › Chapter CHAPTER 81— - ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY › Subchapter SUBCHAPTER V— - ENHANCED-USE LEASES OF REAL PROPERTY › § 8167

Last updated Apr 6, 2026|Official source

Summary

People who lease land under an enhanced-use lease from the Secretary must follow any federal, state, or local tax, fee, or assessment rules that apply to the buildings, improvements, or activities they put on that land. The United States’ ownership of the land itself cannot be taxed or charged by state or local law.

Title 38, §8167

Veterans' Benefits — Source: USLM XML via OLRC

(a)The improvements and operations on land leased by a person with an enhanced-use lease from the Secretary shall be subject to all applicable provisions of Federal, State, or local law relating to taxation, fees, and assessments.

(b)The underlying fee title interest of the United States in any land subject to an enhanced-use lease shall not be subject, directly or indirectly, to any provision of State or local law relating to taxation, fees, or assessments.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2012—Pub. L. 112–154 amended section generally. Prior to amendment, section read as follows: “The interest of the United States in any property subject to an enhanced-use lease and any use by the United States of such property during such lease shall not be subject, directly or indirectly, to any State or local law relative to taxation, fees, assessments, or special assessments, except sales taxes charged in connection with any

Construction

, alteration, repair, remodeling, or improvement project carried out under the lease.”