Title 33, Navigation and Navigable WatersRelease 119-102
§986 Payments to States and Local Governments in Lieu of Taxes; Tax Exemption of Corporation
Title 33 › CHAPTER 19 — SAINT LAWRENCE SEAWAY › § 986
Summary
The Corporation can pay state and local governments instead of property taxes for property it bought that used to be taxed. It decides how much and when to pay, but it should normally not pay more than the taxes that would have been due when it bought the property, unless its activities create extra local costs. The Corporation itself, its property, and its income are not subject to state or local taxes. Companies that contract with the Corporation do not get this tax exemption.
Full Legal Text
Title 33, §986
Navigation and Navigable Waters, Source: USLM XML via OLRC
The Corporation is authorized to make payments to State and local governments in lieu of property taxes upon property which was subject to State and local taxation before acquisition by the Corporation. Such payments may be in the amounts, at the times, and upon the terms the Corporation deems appropriate, but the Corporation shall be guided by the policy of making payments not in excess of the taxes which would have been payable for such property in the condition in which it was acquired, except in cases where special burdens are placed upon the State or local government by the activities of the Corporation or its agents. The Corporation, its property, franchises, and income are expressly exempted from taxation in any manner or form by any State, county, municipality, or any subdivision thereof, but such exemption shall not extend to contractors for the Corporation.
Reference
Citations & Metadata
Citation
33 U.S.C. § 986
Title 33, Navigation and Navigable Waters
Last Updated
Aug 21, 2026
Release point: 119-102