Title 33 — Navigation and Navigable WatersRelease 119-73not60

§986 Payments to States and Local Governments in Lieu of Taxes; Tax Exemption of Corporation

Title 33 › Chapter 19— SAINT LAWRENCE SEAWAY › § 986

Last updated Apr 5, 2026|Official source

Summary

The Corporation may pay state and local governments instead of property taxes for land or buildings that were taxable before the Corporation bought them. It sets the amounts, times, and terms, but should generally not pay more than the taxes that would have been due at purchase unless its actions place special burdens on the government. The Corporation, its property, franchises, and income are exempt from state and local taxes. That tax-free status does not apply to contractors working for the Corporation.

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

Apr 5, 2026

Release point: 119-73not60