§1795k — Title 12 Banks and Banking | U.S. Code

Summary

The Central Liquidity Facility does not have to pay state or local taxes on its charter, operations, funds, surplus, or income. The only tax it may owe is on real property it owns, and that property is taxed the same as similar property owned by others. Notes, bonds, debentures, and their income issued for the Facility are also free from state and local tax, but they are not exempt from gift, estate, inheritance, legacy, succession, or other wealth‑transfer taxes. "State" includes the District of Columbia, and county, city, territorial, or possession taxes count as local taxes.

Title 12, §1795k

Banks and Banking — Source: USLM XML via OLRC

(a)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)(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)For purposes of this section—

(1)the term “State” includes the District of Columbia; and

(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