12 U.S.C. § 1748h–3: Payments in lieu of…

Summary

The Secretary can pay money instead of property taxes on land he owns outright under section 1748b as it stood before August 11, 1955, if taxes or similar payments were due or paid before he bought it. Payments can cover tax years before or after October 5, 1962. Payments cannot be more than taxes on similar property and cannot include interest or penalties. If title is gained partway through a year (for example by foreclosure or transfer), the payment may be prorated for the rest of that year. These rules do not allow creating a legal claim (lien) against property held by the Secretary, and they do not allow payments for interests where the Secretary is only a lessee or mortgagee. Property the Secretary holds under sections 1748h–1 or 1748h–2 is not exempt from state or local taxes and must be taxed like other real property based on value.

Title 12, §1748h–3

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(a)The Secretary is authorized to make payments in lieu of taxes on any real property to which title has been or is hereafter acquired by him in fee under section 1748b of this title as effective prior to August 11, 1955, and on which taxes or payments in lieu of such taxes were payable or paid prior to acquisition by the Secretary. Such payments may be made in connection with tax years occurring prior to or subsequent to October 5, 1962. The amount of any such payments shall not exceed taxes on similar property and shall not include interest or penalties. If the Secretary has acquired or hereafter acquires title in fee to real property by foreclosure or by transfer from some other department or agency of the Government or otherwise during a tax year, he may make a payment in lieu of taxes prorated for that portion of the year remaining after his acquisition of title. This subsection shall not authorize any lien against property held by the Secretary, nor the payment of any tax, nor any payment in lieu of any tax, on any interest of the Secretary as lessee or mortgagee.

(b)Nothing in this subchapter shall be construed to exempt any real property which has been or is hereafter acquired and held by the Secretary under section 1748h–1 or 1748h–2 of this title from taxation by any State or political subdivision thereof, to the same extent, according to its value, as other real property is taxed.

Editorial Notes

Amendments

1967—Subsecs. (a), (b). Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing.

§1748h–3 Payments in Lieu of Taxes; Limitations; Exemption From Taxation

Summary

Title 12, §1748h–3

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata