§1106 — Title 45 Railroads | U.S. Code

Summary

Transfers of any kind of railroad property under these rules do not have to pay taxes or fees that the United States, a State, or local governments usually charge when property is moved or when documents are recorded. People who sell or buy can still record deeds, bills of sale, liens, easements, or releases, but they only must pay normal recording fees that cover the office’s cost. The rule does not change federal income tax. When certain real property is transferred, it acts as if the proper deed was recorded on the transfer date for purposes of legal rights and priority. To keep those rights after 36 months, the buyer or other acquiring party must present the proper deeds or papers for recording within 36 months after the transfer. Conrail must help prepare, sign, and offer those documents for recording.

Title 45, §1106

Railroads — Source: USLM XML via OLRC

(a)(1)All transfers or conveyances of any interest in rail property (whether real, personal, or mixed) which are made under any provision of or amendment made by this subtitle shall be exempt from any taxes, imposts, or levies now or hereby imposed, by the United States or by any State or any political subdivision of a State, on or in connection with such transfers or conveyances or on the recording of deeds, bills of sale, liens, encumbrances, easements, or other instruments evidencing, effectuating, or incident to any such transfers or conveyances, whether imposed on the transferor or on the transferee. Such transferors and transferees shall be entitled to record any such deeds, bills of sale, liens, encumberances,11 So in original. Probably should be “encumbrances,”. easements, or other instruments, and to record the release or removal of any preexisting liens or encumbrances of record with respect to properties so transferred or conveyed, upon payment of any appropriate and generally applicable charges to compensate for the cost of the service performed.

(2)This section shall not apply to Federal income tax laws.

(b)Transfer of designated real property (including any interest in real property) authorized by the amendments made by part 2 of this subtitle shall have the same effect for purposes of rights and priorities with respect to such property as recordation on the transfer date of appropriate deeds, or other appropriate instruments, in offices appointed under State law for such recordation, except that acquiring rail carriers and other entities shall proffer such deeds or other instruments for recordation within 36 months after the transfer date as a condition of preserving such rights and priorities beyond the expiration of that period. Conrail shall cooperate in effecting the timely preparation, execution, and proffering for recordation of such deeds and other instruments.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subtitle, referred to in subsecs. (a)(1) and (b), is subtitle E (§§ 1131–1169) of title XI of Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 643, known as the Northeast Rail Service Act of 1981. Part 2 (§§ 1136–1142) of subtitle E enacted sections 581 to 587, 727, 744a, and 761 to 769a of this title, amended section 601 and 741 of this title, and enacted provisions set out as a note under section 744a of this title. For complete classification of this subtitle to the Code, see

Short Title

note set out under section 1101 of this title and Tables.

§1106 Exemption From Transfer Taxes and Fees; Recordation