(3) The current tax equivalent which would be payable on account of the property, excluding improvements made and tangible personal property added by the Federal Government after acquisition of the property, as determined by applying the average effective tax rate currently applicable to real and tangible personal property in the same jurisdiction to the current fair value of the property as estimated by the owning agency, but the average effective tax rate and the value of the property need not be determined oftener than once in five years. (4) In the case of any commercial or industrial property, the amount determined by applying the average effective tax rate currently applicable to real and tangible personal property in the same jurisdiction to the value of improvements made to such property and of tangible personal property added to such property by the Federal Government, as estimated by the owning agency: Provided, That for the purposes of this paragraph this amount shall in no case exceed ten times the current tax-equivalent determined on account of the same property under paragraph (3) of this subsection: Provided further, That where improvements made and tangible personal property added on or after January 1, 19—, are in the nature of partial or total replacements of improvements made and tangible personal property added by the Federal Government prior to that date, only the excess value of the new improvements and tangible personal property over the value of previously exempted improvements and tangible personal property, determined as of the date of replacement, shall be taken into consideration for purposes of this paragraph. Subject to this paragraph are properties or the portions thereof used on a nonexperimental basis for (A) the production and processing of minerals, or for manufacturing munitions, ships, aircrafts, and other vehicles and commodities; (B) repairing ships, aircraft, and other vehicles and commodities; (C) providing transportation and storage services; and (D) the generation, transmission, or distribution of electric power for sale to any person, or for delivery or sale to any Federal agency for resale to any person: Provided, however, That this paragraph shall not apply to properties of the Atomic Energy Commission other than those used or held for commercial activities, to navigation dams or the navigation portion of multiple-purpose dams, or to any Federal property on which commercial or industrial activities are carried on only occasionally or as a minor incident of activities which are not commercial or industrial. (5) The additional expenditures, if any, by the applicant State or local government necessary for providing services to the Federal Government or to the residents on the Federal property. (6) The provision by the Federal Government of any services ordinarily provided by the applicant State or local government as measured by the unit cost to the applicant State or local government for rendering like services. (7) Any other facts relevant to a fair determination in accordance with the policies and principles of this Act. (c) In the case of any property which prior to the effective date of this Act was subject to State or local taxation under the provisions of any statute or portion thereof repealed by this Act, and is not subject to taxation under title II of this Act as property acquired in connection with loans or contracts of insurance or guaranty, or as property under lease or conditional-sale contracts, taxpayments under the provisions of subsection 201 (b) of this Act may be substituted for any payments provided in subsection (b) of this section if it is determined by the owning agency and concurred in by the Commission that the policy of this Act will be better served thereby. (d) This section shall not extend, in the case of the Tennesse Valley Authority, to power properties (including the portion of multipurpose properties allocated to power purposes) which are owned by or in the custody of the Authority. The Authority shall continue to make payments to States and local governments on account of its power properties and as a charge against its power operations in accordance with section 13 of the Tennessee Valley Authority Act of 1933 (May 18, 1933; ch. 32, 48, Stat. 66), as amended by section 39 of the Act of June 26, 1940 (ch. 432, 54 Stat. 626; 16 U. S. C. 831 (1)), and payments which may be required hereunder on account of nonpower properties shall be in addition to the payments required by section 13 of the Tennessee Valley Authority Act, as amended. (e) Any payments under this section to the State or local governments of Arizona and Nevada in connection with those properties which are included in the "project" as defined in the Boulder Canyon Project Adjustment Act (July 19, 1940; ch. 643, 54 Stat. 775; 43 U. S. C. 618), shall be deducted from the amount otherwise payable to each of these States under subsection 2 (c) of that Act. PAYMENTS ON HOUSING PROPERTIES SEC. 102. (a) Payments to State and local governments in lieu of taxes on the following real properties owned by the Federal Government for certain housing purposes (including housing contructed under the following laws transferred to Federal agencies other than the Housing and Home Finance Agency) are hereby authorized: (1) Resettlement and rehabilitation projects constructed under (A) the National Industrial Recovery Act of 1933 (June 16, 1933; ch. 90, title II, sec. 208, 48 Stat. 405; 40 U. S. C. 408); and (B) the Emergency Relief Appropriation Act of 1935 (April 8, 1935; ch. 48; 49 Stat. 115); and (2) Housing under (A) the Second Supplemental National Defense Appropriation Act of 1941 (September 9, 1940; ch. 717, 54 Stat. 872); (B) the National Defense Housing Act of 1940 (October 14, 1940; ch. 861, 54 Stat. 1125), as amended (42 U. S. C. 1521 and the following); (C) the Urgent Defiency Appropriation Act of 1941 (March 1, 1941; ch. 9, 55 Stat. 14); (D) the Additional Urgent Deficiency Appropriation Act of 1941 (May 24, 1941; ch. 132, 55 Stat. 198); (E) the Third Supplemental National Defense Appropriation Act of 1942 (December 17, 1941; ch. 591, 55 Stat. 810); and (F) title II of the Act of June 28, 1940 (ch. 440, 54 Stat. 681), as amended October 26, 1942 (ch. 626, 56 Stat. 988; 42 U. S. C. 1521–1524), during the period that such housing is found by the President to be needed to house persons engaged in national defense activities. (b) Annual payments shall be made to any applicant State or local government on account of real property included under this section. Such payments shall approximate the taxes that would be paid to the applicant government upon such property if it were not exempt from taxation, subject to deductions to allow for the provision by the Federal Government of any services ordinarily provided by the State or local government. The amount of any such deduction shall be based upon the unit cost to the State or local government for rendering like services. EXEMPTIONS SEC. 103. The following Federal properties, including sites and improvements, shall be exempt from any payments under this title except as provided in section 104 of this Act: (a) Any property used or held primarily for purposes for which property under private ownership would be exempt from taxation under the constitution or laws of the State of location. (b) Any property used or held primarily for services to the local public, including but not limited to the following types of properties: Courthouses; post offices and property incidental to local postal operations; weather stations and observation posts; assay offices; local irrigation projects; sanitation projects; federally owned airports maintained and operated by the Civil Aeronautics Administration; and any property used for experimental, testing, or research purposes, such as a pilot plant, experimental farm, testing station, or laboratory, if the activities associated therewith serve primarily the local public. (c) Any property used or held for land-utilization projects, the national forests, national parks and monuments and related activities, and fish and wildlife refuges. (d) Office buildings other than those which are incidental to or an integral part of the properties classified under the preceding sections of this title and under title II of this Act, prisons, reformatories, detention farms, hospitals, dispensaries, out-patient clinics, homes for the aged, sanitaria, quarantine stations, cemeteries, Coast Guard aids to navigation, Civil Aeronautics Administration aids to air navigation, beacons, facilities used in the police and regulatory functions of the Federal Government other than those which are incidental to or an integral part of the properties classified under the preceding sections of this title and under title II of this Act, and any Federal tangible personal property used primarily in connection with Federal real property that is not subject to payments under this title. TRANSITION PAYMENTS SEC. 104. (a) Transition payments under this section shall be made upon properties classified under subsections (c) and (d) of section 103 of this Act, if, on or after January 1, 19, such properties have been acquired by the Federal Government and thereby removed from taxable ownership, or if such properties have since that date, and while in Federal ownership, been subject to payment of taxes, payments in lieu of taxes, or payments of any portion of the revenue derived from the use or products of such property to the State or local government within the geographic boundaries of which the property is situated: Provided, however, That there shall not be subject to the provisions of this section (1) any properties which are managed or administered by a State or local government and which if owned by such State or local government would be exempt from taxation, and (2) any property which would be exempt under subsection (a) or (b) of section 103 of this Act in the absence of subsection (c) or (d) of that section. (b) Payments shall be made on properties included in this section as follows: (1) In the case of properties which immediately prior to Federal acquisition were in taxable ownership, payments for each of the first two tax years following Federal acquisition shall be approximately equal to the average annual taxes, if any, charged against such property for the last two years in which it was in taxable ownership; for each of the next two years, payments shall be 80 per centum of this amount; for each of the next two years, 60 per centum; for each of the next two years, 40 per centum; for each of the next two years, 20 per centum; and thereafter no further payments shall be made. If taxes have been paid on any property under this section for the tax year in which acquisition takes place, this payment of taxes shall be in lieu of the first annual transition payment under this section, and shall be averaged with the taxes paid for the preceding year in determining the amounts of subsequent payments. In the case of properties under this paragraph which were acquired by the Federal Government on or after January 1, 19-, but before the first day for filing application under section 505 of this Act, payments shall be made in accordance with the percentage schedule in this paragraph for the period remaining until ten years shall have passed since such change in ownership of the property, after which no further payments shall be made under this section; and, in measuring the ten-year period to which the percentage schedule shall apply, each tax year which has elapsed since Federal acquisition of the property shall be counted. (2) In the case of properties which, prior to being placed in a use which would lead to their classification under subsection (c) or (d) of section 103 of this Act, were subject to payments by the Federal Government of taxes, payments in lieu of taxes, or payments to the State or local government of any portion of the revenue derived from the use or products of such properties, the payment under this section for each of the first two tax years after the property becomes ineligible for payments under any other authority shall be approximately equal to the average annual payment made upon such property during the preceding two years. For each of the next two years payments shall be 80 per centum of this amount; for each of the next two years, 60 per centum; for each of the next two years, 40 per centum; for each of the next two years, 20 per centum; and thereafter no further payments shall be made. In the case of properties under this paragraph which, on or after January 1, 19-, but before the first day for filing application under section 505 of this Act, were transferred from a use in which payments by the Federal Government to State or local governments were authorized, payments shall be made in accordance with the percentage scheduled in this paragraph for the period remaining until ten years shall have passed since such change in the use of the property, after which no further payments shall be made under this section; and, in measuring the ten-year period to which the percentage schedule shall apply, each tax year which has elapsed since the change in the use of the property shall be counted. (c) In determining the amount of payments under this section, consideration shall also be given to any payments made to the State or local government under the provisions of any Federal statute which requires or authorizes the Federal Government to pay any portion of the revenue derived from the use of products of such property. Any payment otherwise due under this section for any taxable year shall be reduced by the amount of any payment made under any such reve nue-sharing arrangement in the twelve months preceding the date on which payments under this section are due. Nothing in this title except as provided in subsection 101 (e) shall be construed as altering in any way the provisions of those Federal statutes listed in subsection 508 (a) (2) of this Act which require or authorize the Federal Government to pay any portion of the revenue derived from the use or products of property included in this section or section 103 herein. TITLE II-CONSENT TO STATE AND LOCAL TAXATION TAXATION OF PROPERTY ACQUIRED IN CONNECTION WITH LOANS OR CONTRACTS OF INSURANCE OR GUARANTY SEC. 201. (a) Consent is hereby granted to any State or local government to tax Federal property acquired to protect the financial interest of the Federal Government in connection with loans or contracts of insurance or guaranty, while held pending disposition or until put to permanent use by the Federal Government. When such property is put to permanent use by the Federal Government, the classification of the property as specified in this Act shall be controlling as to any payments with respect to such property. The provisions of this section shall also apply to any property for which tax payments are to be made pursuant to the authority given in subsection 101 (c) of this Act. (b) The property included under this section may be taxed to the same extent and in the same manner according to its value as if it were privately owned, and any such tax shall be based upon an assessed valuation which does not represent a larger percentage of true value than is used by assessing authorities in valuing property generally for tax purposes within the taxing jurisdiction: Provided, however, That, in the case of any property acquired by the Federal Government to protect its financial interest in connection with loans or contracts of insurance or guaranty, any special tax treatment accorded to other similar property shall be applied to such property held by the Federal Government. The Federal Government shall not be subject to penalties or penalty interest nor shall its property be subject to any lien, foreclosure, or other proceedings because of its nonpayment or failure to make timely payment of taxes; nor shall subsequent owners be liable therefor: Provided, however, That this shall not preclude the payment of penalties or penalty interest when the Federal owning agency determines that such payment is in the interest of the Federal Government. TAXATION OF PROPERTY UNDER LEASE OR CONDITIONAL-SALE CONTRACTS SEC. 202. (a) Consent is hereby granted to any State or local government to tax to the Federal Government Federal property which is leased or sold by conditional sale to taxable persons and is not otherwise subject to State or local taxation. The Federal interest in property included under this section may be taxed to the same extent and in the same manner according to its value as like privately owned property. The Federal Government shall not be subject to penalties or penalty interest nor shall its property be subject to any lien, foreclosure, or other proceedings because of its nonpayment or failure to make timely payment of taxes; nor shall subsequent owners be liable therefor: Provided, however, That this shall not preclude the payment of penalties or penalty interest when the Federal owning agency determines that such payment is in the interest of the Federal Government. (b) The provisions of this section shall not apply to Federal properties under lease in cases in which the amounts received by the Federal Government are shared with State or local governments under provisions of laws listed in subsection 508 (a) (2) of this Act nor to housing properties covered by section 102 of this Act. TITLE III-CONSENT TO SPECIAL ASSESSMENTS PROPERTY SUBJECT TO SPECIAL ASSESSMENTS SEC. 301.(a) Consent is hereby granted to any State or local government to levy special assessments for local improvements against Federal real property in the same manner as against real property privately owned in such jurisdiction: Provided, however, That in the undertaking of any local improvement project by a State or local government, the Federal Government shall have the same rights and privileges in approving, rejecting, or contesting such project or assessment as are accorded to owners of private property: And provided further, That the consent hereby granted shall extend only to special assessments for local improvements authorized after the effective date of this Act and to special assessments outstanding at the time of acquisition against Federal real property acquired after the effective date of this Act. (b) The Federal Government shall be exempt from any special assessment on property devoted to uses which are exempt when under private ownership in the jurisdiction imposing the special assessment. (c) The Federal Government shall not be subject to penalties or penalty interest nor shall its property be subject to any lien, foreclosure, or other proceedings because of its nonpayment or failure to make timely payment of special assessments for local improvements, nor shall subsequent owners be liable thereof: Provided, however, That this shall not preclude the payment of interest charged on special assessments paid in installments over a period authorized by State or local law, nor the payment of penalties or penalty interest when the Federal owning agency determines that such payment is in the interest of the Federal Government TITLE IV-PAYMENTS TO LOCAL GOVERNMENTS NOT OTHERWISE COMPENSATED FOR SUBSTANTIAL FINANCIAL BURDENS AUTHORITY TO ESTABLISH SUPPLEMENTARY SYSTEM OF PAYMENTS SEC. 401. (a) The Commission is hereby authorized, when and if it deems desirable, to establish by regulation a system for aiding those local governments upon which the Federal Government or any Federal agency has placed a substantial financial burden for providing local governmental services to Federal property, to persons living on Federal property, or to persons employed on Federal property. in cases in which relief from such burden is not provided through payments under other parts of this Act or through payments or the provision of services under any other law. Eligibility of a local government for payments under this title shall not depend upon the location of the Federal property within the geographic boundaries of the local government nor upon the date when the property was acquired by the Federal Government. (b) Pursuant to regulations which may he issued by the Commission under this title, owning agencies may cause payments to be made to eligible local governments. Any such regulations shall provide that, in determining whether an applicant local government is eligible for payments under this title for any year, the owning agency shall determine that the applicant local government is making a reasonable tax effort and is exercising due diligence in availing itself of Federal, State, and other financial assistance but is unable to secure sufficient funds to meet the additional expenditures involved. Any such regulations that provide further that, in determining the amount of any payment under this title, consideration shall be given to the following factors to the extent that each is pertinent, and such regulations shall specify or recommend the relative weights to be given them: (1) The additional expenditures, if any, by the applicant local government necessary for providing services to the Federal Government, to persons living on Federal property, or to persons employed on Federal property. (2) The provision by the Federal Government of any services ordinarily provided by the applicant local government as measured by the unit cost to the applicant local government for rendering like services. (3) Any other payments, including taxes, payments in lieu of taxes, grants-in-aid, or shared revenues, made by the Federal Government to the applicant local government or to the State for the applicant local government, or such payments made to a State which are distributed to an applicant local government as State aid. (4) The estimated amount of taxes paid to the applicant local government (A) by persons living on Federal property; (B) by persons employed on Federal property; and (C) for or in connection with any property, trade, business, occupation, or transaction on Federal property, whether paid to the applicant local government directly or indirectly, including estimates of such taxes paid to the State or another governmental authority and made available to the applicant local government through State aid or otherwise. (5) Any other facts relevant to the effectuation of the policies and prin ciples of this Act. |