PRIA, Government Policy, Made Personal

Summary

Exempts the Central Liquidity Facility — its operations, funds, and earnings — from state and local taxes. Taxes on land it owns still apply and are paid like taxes on similar property. Debt it issues (notes, bonds, debentures) and income from that debt are also tax‑free, but they are not exempt from gift, estate, inheritance, legacy, succession, or other wealth‑transfer taxes. “State” includes the District of Columbia. County, city, and U.S. territory taxes are treated as local taxes.

Title 12, §1795k

Banks and Banking, Source: USLM XML via OLRC

(a)Franchise, activities, etc., of Central Liquidity Facility; exception

The Central Liquidity Facility, and its franchise, activities, capital reserves, surplus, and income, shall be exempt from all State and local taxation now or hereafter imposed, other than taxes on real property held by the Facility (to the same extent, according to its value, as other similar property held by other persons is taxed).

(b)Notes, bonds, debentures and other obligations of Central Liquidity Facility; exceptions

(1)Except as provided in paragraph (2), the notes, bonds, debentures, and other obligations issued on behalf of the Central Liquidity Facility and the income therefrom shall be exempt from all State and local taxation now or hereafter imposed.

(2)Any obligation described in paragraph (1) shall not be exempt from State or local gift, estate, inheritance, legacy, succession, or other wealth transfer taxes.

(c)“State” defined; tax status

For purposes of this section

(1)

(2)taxes imposed by counties or municipalities, or any territory, dependency, or possession of the United States shall be treated as local taxes.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 98–369, div. B, title VIII, § 2813(c), July 18, 1984, 98 Stat. 1207, provided that: “The

Amendments

made by this section [enacting this section and amending section 1795b of this title and section 501 of Title 26, Internal Revenue Code] shall take effect on October 1, 1979.”

§1795k State and Local Tax Exemption