42 U.S.C. § 1490h: Taxation of property held…

Summary

If the federal government has a lien on property or the Secretary owns the title under this part, state, territorial, and local governments can tax that property like any other, unless the property is used for administrative purposes. No tax can be charged on any loan, mortgage, or lien document when the tax is based on (1) the value of notes, mortgages, or similar lien papers held by or given to the Secretary; (2) notes or lien papers the Secretary manages that were made, assigned, or held by someone who would otherwise owe the tax; or (3) the value of property transferred to the Secretary, whether the tax is on the document, on the act of transferring, or on recording it. Not paying or collecting one of these taxes cannot be used to refuse to record or file the documents, to stop giving notice, or to block enforcement in state or federal court.

Title 42, §1490h

The Public Health and Welfare, Source: USLM XML via OLRC

All property subject to a lien held by the United States or the title to which is acquired or held by the Secretary under this subchapter other than property used for administrative purposes shall be subject to taxation by a State, Commonwealth, territory, possession, district, and local political subdivisions in the same manner and to the same extent as other property is taxed: Provided, That no tax shall be imposed or collected on or with respect to any instrument if the tax is based on—

(1)the value of any notes or mortgages or other lien instruments held by or transferred to the Secretary;

(2)any notes or lien instruments administered under this subchapter which are made, assigned, or held by a person otherwise liable for such tax; or

(3)the value of any property conveyed or transferred to the Secretary, whether as a tax on the instrument, the privilege of conveying or transferring, or the recordation thereof; nor shall the failure to pay or collect any such tax be a ground for refusal to record or file such instruments, or for failure to impart notice, or prevent the enforcement of its provisions in any State or Federal court.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1984—Pub. L. 98–479 substituted “property held by Secretary” for “Farmers Home Administration-held property” in section catchline.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 95–128, title V, § 512(c), Oct. 12, 1977, 91 Stat. 1142, provided that: “The amendment made by subsection (a) [enacting this section] shall become effective as of

January 1, 1977.” Refund of Tax Payments Prior to

October 12, 1977, Barred; Federal Officers or Employees Not Liable for Such Payments Pub. L. 95–128, title V, § 512(b), Oct. 12, 1977, 91 Stat. 1142, provided that: “Notwithstanding any other provision of law, no State, Commonwealth, territory, possession, district, or local political subdivision which has received, prior to the date of enactment of this Act [Oct. 12, 1977], tax payments from the Department of Agriculture based on property held by the Farmers Home Administration shall be liable for, or be obligated to refund, the amount of any such payment, which, if it had been made after the date of enactment of this Act, would have been authorized by the provisions of section 528 of the Housing Act of 1949 [this section], and no officer or employee of the United States shall incur or be under any liability by reason of having made or authorized any such payments.”

§1490h Taxation of Property Held by Secretary