§3019 Taxation by State, County, Etc., Taxing Authority; Federal Tax Status

Summary

Exempts the Bank, its franchise, capital, reserves, surplus, mortgages, other security holdings, and income from state, county, municipal, or local taxes. Any real estate the Bank owns must still be taxed like other real property based on its value. For federal tax rules under subchapter T of chapter 1 of title 26, treats the Bank as a cooperative corporation under section 1381(a)(2). Says that "patronage dividend" (per section 1388(a)) only means patronage refunds given as class B or class C stock or as allocated surplus when those are distributed or set aside under section 3014(i). The phrases "written notice of allocation" and "qualified written notices of allocation" (sections 1388(b) and (c)) include, to the extent of par value, class B or C stock given under section 3014(i) and also include allocated surplus set aside under that same section. Patrons are treated as having consented to include qualified notices of allocation they get from the Bank in their income. Any amounts patrons must include for class B or C stock or allocated surplus count as earnings from business those patrons did with or for their own patrons.