16 U.S.C. § 835c–1: Taxation and assessments…

Summary

The Secretary can make deals to pay yearly sums to a State or local government instead of property taxes on land the United States owns under this Act, using money from leasing that land. Those payments cannot be more than the taxes that would be charged if the land were not tax-exempt. Land the United States buys under this Act in Washington must follow Washington laws about irrigation, reclamation, and conservancy districts. Those districts can assess or tax the land and place liens just like they can on private land. The United States does not promise to pay those taxes. If the United States signs a sale contract, the land under contract can be taxed and enforced like private land, but any tax liens are wiped out if the land later reverts to the United States because of buyer default, and the taxing authority must release them.

Title 16, §835c–1

Conservation, Source: USLM XML via OLRC

(a)Payments in lieu of taxes

The Secretary may enter into agreements to pay annual sums in lieu of taxes to any State or political subdivision thereof with respect to any real property situated therein after it is acquired pursuant to the authority of this Act and before execution by the United States of a contract of sale covering it, out of funds derived from the leasing of such lands. The amount so paid for any year upon any such property shall not exceed the taxes that would be paid to the State or subdivision as the case may be upon such property if it were not exempt from taxation thereby.

(b)Lands acquired by United States

Any public lands within the project and any lands or interests in lands acquired by the United States under this Act, beginning at such date or dates and subject to such provisions and limitations as may be fixed or provided by regulations made under section 8 [16 U.S.C. 835c–4], shall be (i) subject to the provisions of the laws of the State of Washington relating to the organization, government, and regulation of irrigation, reclamation, and conservancy districts, and (ii) subject to legal assessment or taxation by any such district, and to liens for such assessments and taxes and to all proceedings for the enforcement thereof, in the same manner and to the same extent as privately owned lands of like character. The United States does not assume any obligation for amounts so assessed or taxed; and any proceedings to enforce them shall be subject to any title then remaining in the United States, to any prior lien reserved to the United States for unpaid installments under land sale contracts made under this Act, and to any lien for any other charges, accrued or unaccrued, under and by virtue of such contracts or any contract between the United States and the district in which the land is located.

(c)Sale of project lands

In addition to taxation or assessment under subsection (b) upon execution by the United States of a contract of sale of any lands within the project, the lands under contract may be taxed by the State or political subdivision thereof in the same manner and to the same extent as privately owned lands of a like character. All taxes legally so assessed may be enforced in the same manner and under the same proceeding whereby said taxes are enforced against privately owned lands, subject to the limitations in favor of the United States that govern the enforcement of district assessments or taxes as provided in subsection (b). If lands under any such contract shall at any time revert to the United States before transfer of title under the contract by reason of default thereunder, all liens or tax titles resulting from taxes levied pursuant to the authority of this subsection upon such lands shall be thereupon extinguished; and the levying of any such tax by such State or political subdivision shall be deemed to be an agreement on its part, in the event of such reversion, to execute and record a formal release of such lien or tax title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsecs. (a) and (b), is act May 27, 1937, ch. 269, as amended generally by act Mar. 10, 1943, ch. 14, 57 Stat. 14, known as The Columbia Basin Project Act, which enacted this section, section 835, 835a to 835c, and 835c–2 to 835c–5 of this title, and provisions set out as a note under section 835 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 835 of this title and Tables.

Amendments

1962—Subsec. (b). Pub. L. 87–728 struck out “

Regulations

to carry out this subsection shall be effective when filed for record in the manner provided in section 835a(f) of this title”.

§835c–1 Taxation and Assessments; Applicability of State Laws