Title 38, Veterans' BenefitsRelease 119-110
§8167 Exemption From State and Local Taxes
Title 38 › PART VI — ACQUISITION AND DISPOSITION OF PROPERTY › CHAPTER 81 — ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY › SUBCHAPTER V — ENHANCED-USE LEASES OF REAL PROPERTY › § 8167
Summary
Improvements and operations on enhanced‑use leases must follow federal, state, and local tax, fee, and assessment laws. The U.S. fee title in the land is exempt from state and local taxes and fees.
Full Legal Text
Title 38, §8167
Veterans' Benefits, Source: USLM XML via OLRC
(a)Improvements and Operations Not Exempted.—
The improvements and operations on land leased by a person with an enhanced-use lease from the Secretary shall be subject to all applicable provisions of Federal, State, or local law relating to taxation, fees, and assessments.
(b)Underlying Fee Title Interest Exempted.—
The underlying fee title interest of the United States in any land subject to an enhanced-use lease shall not be subject, directly or indirectly, to any provision of State or local law relating to taxation, fees, or assessments.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2012—Pub. L. 112–154 amended section generally. Prior to amendment, section read as follows: “The interest of the United States in any property subject to an enhanced-use lease and any use by the United States of such property during such lease shall not be subject, directly or indirectly, to any State or local law relative to taxation, fees, assessments, or special assessments, except sales taxes charged in connection with any
Construction
, alteration, repair, remodeling, or improvement project carried out under the lease.”
Reference
Citations & Metadata
Citation
38 U.S.C. § 8167
Title 38, Veterans' Benefits
Last Updated
Sep 22, 2026
Release point: 119-110