(j) The term "taxable person", when used in relation to the payment of any tax, means any person who is the owner of any property and who is not, by reason of his status or the use made of such property, exempt from obligation to pay such tax;

(k) The term "special assessment" means any levy, other than a tax, imposed by any State tax authority directly upon real property situated within its territorial jurisdiction to defray the cost of any public improvement, and equitably apportioned according to the benefit conferred by such improvement upon such property;

(1) The term "property" means any real property or tangible personal property;

(m) The term "real property", when used in relation to any tax or special assessment, means any interest in land, and any improvement thereon if such improvement constitutes real property under law in effect within the State tax authority imposing such tax or special assessment;

(n) The term "tangible personal property", when used in relation to any tax, means any physical object, other than real property, defined as tangible personal property by law in effect within the State tax authority imposing such tax, but does not include any coin, bullion, currency, credit, security, or chose in action;

(o) The term "industrial or commercial use", when used in relation to any Federal property, includes any use made of such property for (1) the mining, manufacturing, fabrication, or repair of any article or commodity, (2) the generation of electrical energy, (3) the transportation of individuals or property, (4) the storage of property, and (5) the sale or leasing of commodities or services;

(p) The term "governmental use", when used in relation to any Federal property, means any use made of such property other than (1) an industrial or commercial use, or (2) use for the housing of individuals for which rent is received; and

(q) The term “local governmental use", when used in relation to any Federal property, means any governmental use made of such property for the purpose of rendering public service to or for persons residing within the vicinity of such property.

CONSENT TO TAXATION OF CERTAIN FEDERAL PROPERTY

SEC. 4. (a) Except as otherwise provided by this Act, all Federal property of the following classes situated within the territorial jurisdiction of any State tax authority shall be subject to the assessment and collection of any tax imposed by such authority to the same extent and under the same conditions as other property of like class situated within such jurisdiction

(1) any property legal title to which is held by a Federal agency to secure any Federal agency against loss in connection with any loan, contract of insurance, or guaranty; and

(2) any property legal title to which is held by any Federal agency but which has been leased, or sold under a conditional sale contract, to any taxable person.

(b) Tax payments authorized by subsection (a) with respect to any property shall be made by the Federal agency which is the controlling agency for such property at the beginning of the tax year for which such tax is imposed. If such agency ceases to exist before such payment is made, payment shall be made by the Federal agency which is the successor of such controlling agency, as determined by the Director of the Bureau of the Budget.

PAYMENTS IN LIEU OF TAXES WITH RESPECT TO CERTAIN FEDERAL PROPERTY

SEC. 5. (a) Except as otherwise provided by this Act, payments in lieu of taxes shall be made to each State tax authority for each fiscal year with respect to all Federal property (other than property subject to tax under section 2) of the following classes situated within the territorial jurisdiction of such authority:

(1) Any property devoted to commercial or industrial use by any Federal agency or by any other person acting, directly or indirectly, for or on behalf of any Federal agency;

(2) Any property devoted to the housing of individuals for which rent is received; and

(3) Any property devoted primarily to any other use except a local governmental use.

(b) Subject to limitations contained in this Act, the aggregate amount of the payments authorized by subsection (a) to be made to each State tax authority for each fiscal year shall be a sum equal to

(1) the nominal Federal tax liability, which shall be the aggregate amount of the taxes which would be payable to such authority during such year with respect to all property of the classes specified in subsection (a) if legal title to such property were held by a taxable person for that portion of the applicable tax year during which such title was held by one or more Federal agencies; reduced by

(2) the Federal credit against tax liability, which shall be the aggregate value of governmental services of kinds normally furnished by State tax authorities which, during such fiscal year, were furnished within the territorial jurisdiction of such authority by Federal agencies, computed upon the basis of the unit cost incurred by such authority in providing like services, or (in the absence of such data) the unit cost therefor incurred by comparable State tax authorities in the same vicinity; and increased by (3) the Federal specific liability, which shall be the aggregate amount of the expenditures incurred by such authority during such fiscal year in furnishing to or on behalf of all such Federal property services of kinds not customarily furnished by such authority to or on behalf of other properties of like class.

(c) No payment shall be made under this section to any State tax authority for any fiscal year with respect to any Federal property unless such authority(1) files with the Federal agency which is the controlling agency for such property a claim, in such form and containing such information as the Board shall prescribe, for payment under this section with respect to all Federal property subject to such payment which is controlled by such agency within the territorial jurisdiction of such authority;

(2) files with such claim an itemized statement of (A) the property with respect to which such claim is made; (B) the assessed valuation placed by such authority upon such property; (C) the nominal Federal tax liability claimed with respect to such property; (D) the tax rate or rates applied in computing the amount of the nominal Federal tax liability of such agency; (E) the amount of the Federal credit against tax liability accorded to such agency in computing the amount claimed from such agency under this section; and (F) the amount of any Federal specific liability included in such claim for payment;

(3) files with such claim a detailed statement of the procedural action which may be taken by such agency to obtain administrative review, or judicial review, or both, with respect to the nominal Federal tax liability of such agency with respect to any such property;

(4) for the purpose of determining the amount of the nominal Federal tax liability of such Federal agency under subsection (b), makes available to such agency all substantive and procedural rights, administrative and judicial, which would be available under law in effect within such authority in determining the valuation of such property, the rate of tax applicable thereto, and the amount of the tax which would be payable with respect thereto if such property were owned by a taxable person; and

(5) for such purpose treats such property in all respects in a manner at least as favorable as the treatment accorded to property of like kind owned by taxable persons.

(d) Each payment authorized by this section with respect to any property shall be made by the Federal agency which is the controlling agency for such property at the beginning of the fiscal year for which such payment is due. If such agency ceases to exist before such payment is made, payment shall be made by the Federal agency which is the successor of such controlling agency, as determined by the Director of the Bureau of the Budget.

(e) Whenever any Federal agency and any State tax authority fail to agree with respect to any question concerning the identity of Federal property claimed to be subject to payments under this section, the amount of the Federal credit against tax liability or the amount of the Federal specific tax liability to be included in computing the amount of any payment to be made by such agency under this section to such authority with respect to any Federal property, application may be made by such agency or by such authority to the Board for the determination of such question.

(f) Whenever properties subject to payments under this section which are situated within the territorial jurisdiction of any State tax authority are con

trolled by more than one Federal agency, and determination of the amount so payable by any such agency involves any question concerning the allocation among two or more such agencies of the amount of the Federal credit against tax liability or the amount of the Federal specific tax liability which shall be included in computing the aggregate amount of the payments to be made to such authority with respect to all such properties, such authority shall apply to the Board for the determination of such question.

EXCLUDED PROPERTIES

SEC. 6 (a) No payment shall be made under section 4 or section 5 to any State tax authority with respect to any Federal property

(1) acquired by any Federal agency before September 8, 1939; or

(2) subject to taxation by such authority, or with respect to which any payment in lieu of taxes is authorized to be made to such authority, under any ohter provision of law.

(b) No such payment shall be made with respect to any Federal property which

(1) if privately owned or controlled, would be exempt from tax because of the use to which it is devoted;

(2) is the subject of any revenue sharing arrangement, entered into under authority of Federal law, under which any portion of the revenue derived from its use or sale, or from any product of such property, is paid to such authority; or

(3) is devoted primarily to any local governmental use, including (without limitation) and courthouse; post office; property used for any purpose incidental to local postal operations; weather station or observation post; assay office; local irrigation or sanitation project; airport maintained and operated by the Civil Aeronautics Administration; or any plant, farm, station, laboratory, or other property devoted to any experimental, testing or research purpose rendered primarily to the local public.

(c) No such payment shall be made with respect to any

(1) office building which is not devoted to any industrial or commercial use and is not included within any class of properties listed in section 4 (a); (2) customs house;

(3) facility for coining money or printing currency;

(4) bullion depository;

(5) river or harbor improvement;

(6) prison, reformatory, detention farm, or disciplinary barracks;
(7) hospital, dispensary, clinic, or other medical facility:

(8) sanatorium, home for the aged, or facility providing domiciliary care;
(9) cemetery;

(10) aid to navigation administered by the United States Coast Guard;
(11) beacon or other aid to air navigation administered by the Civil Aero-

nautics Administration;

(12) facility used in the performance by any Federal agency or any police, investigative, or regulatory function, except any such function performed incidental to the administration of property of any class listed in section 4 (a) or section 5 (a); or

(13) post, camp, station, fort, armory, airfield, proving ground, or other installation administered by any of the Armed Forces of the United States, except to the extent that any such installation may be devoted to any industrial or commercial use.

(d) No such payment shall be made with respect to any

(1) stock of strategic or critical material or any agricultural commodity in the custody of any Federal agency; or

(2) other personal property unless such property is devoted to an industrial or commercial use.

LIMITATIONS ON PAYMENTS IN LIEU OF TAXES

SEC. 7. (a) Whenever the aggregate amount of the payments authorized by section 5 to be made for any fiscal year to any State tax authority by one or more Federal agencies with respect to all property of the classes described in paragraphs (1) and (3) of section 5 (a) exceeds the aggregate amount of the taxes levied by such authority upon all taxable property situated within its territorial jurisdiction which is not Federal property, any such Federal agency may apply to the Board for an order requiring a reduction in the amount so payable by such Federal agency. Upon the filing of such application, the Board shall give notice thereof to such authority and to each Federal agency subject to any such payment, and after hearing shall determine whether the payment of the aggregate amount payable by such agencies under section 5 would confer upon such authority unwarranted benefit contrary to the interest of taxpayers of the United States. If the Board determines that the payment of such aggregate amount would confer such unwarranted benefit, it shall prescribe (1) such lower aggregate amount as it shall determine to be fair and equitable, and (2) the portion thereof to be paid by each such Federal agency. The aggregate amount so prescribed shall be a sum not less than the aggregate amount of the taxes levied by such authority for the applicable tax year upon all taxable property situated within its territorial jurisdiction which is not Federal property. The portion thereof to be paid by each such Federal agency shall be a sum which has the same relationship to such aggregate amount as the assessed valuation of all property administered by such agency with respect to which such payment is made has to the total assessed valuation of all property administered by all Federal agencies with respect to which all such payments are made.

(b) Whenever any State tax authority fails to furnish to property administered by any Federal agency, or to any officer or employee thereof, or to the family of any such officer or employee, any service furnished by such authority to any other property or resident upon the same terms upon which such service is furnished to such other property or resident, and such agency has not expressly waived the furnishing of such service as unnecessary or undesirable, no payment shall be made under section 5 to such authority by any Federal agency for any tax year during which such failure occurs.

TRANSITIONAL PAYMENTS IN LIEU OF TAXES

SEC. 8. (a) In addition to the payments authorized by section 5, payments in lieu of taxes shall be made to each State tax authority, for each of the first ten fiscal years beginning after the date of enactment of this Act, with respect to all Federal property situated within the territorial jurisdiction of such authority which

(1) is of any class listed in section 6 (c), but is not included within any class described in section 6 (b);

(2) was acquired by the United States or any Federal agency on or after the date which is ten years before the date of enactment of this Act; and

(3) is not subject to tax under section 2.

(b) The aggregate amount of the payments authorized by subsection (a) to be made with respect to such property to each State tax authority for each such fiscal year shall be a sum equal to the difference between the following two sums:

(1) The aggregate amount which would be payable with respect to such property for such year if such property were subject to payments in lieu of taxes under section 5; and

(2) A sum equal to the percentage of such aggregate amount which is specified for such fiscal year in the following tabulation:

(c) The provisions of subsections (c), (d), (e), and (f) of section 5 shall apply to payments made under this section ot the same extent and with the same effect as if such payments were authorized to be made under section 5. The prohibition contained in section 7 (b) shall apply to payments made under this section.

CONSENT TO LEVY OF SPECIAL ASSESSMENTS

SEC. 9. (a) Except as otherwise provided by this Act, all Federal property situated within the territorial jurisdiction of any State tax authority shall be subject to the levy and collection of any special assessment upon real property to the same extent and under the same conditions as other property of like class situated within such jurisdiction whenever such assessment is levied upon non-Federal as well as Federal property. No payment shall be made under this subsection unless such authority treats all Federal property subject to such payment in all respects in a manner at least as favorable as the treatment accorded to property of like kind owned by taxable persons.

(b) Payment of any portion of any special assessment authorized by subsection (a) with respect to any property shall be made by the Federal agency which is the controlling agency for such property at the time such portion becomes due and payable under law in effect within the State tax authority imposing such special assessment. If such agency ceases to exist before such payment is made, payment shall be made by the Federal agency which is the successor of such controlling agency, as determined by the Director of the Bureau of the Budget.

FEDERAL TAX PAYMENTS BOARD

SEC. 10. (a) There is hereby established the Federal Tax Payments Board, which shall be composed of three members appointed by the President by and with the advice and consent of the Senate. Not more than two members of the Board shall be members of the same political party. Of the original members, one shall be appointed for a term of one year, one for a term of two years, and one for a term of three years. Succeeding members of the Board shall be appointed for terms of three years each, except that any individual appointed to fill a vacancy shall be appointed for the unexpired term of the member whom he succeeds. The President shall designate one member to serve as chairman of the Board. Any member of the Board may be removed by the President, after notice and hearing, for malfeasance in office, neglect of duty, or incompetence, but for no other cause.

(b) A vacancy in the Board shall not impair the right of the remaining members to exercise all the powers of the Board, and two members shall at all times constitute a quorum. The Board shall have an official seal which shall be judicially noticed.

(c) Each member of the Board shall receive a salary of $14,000 a year, shall be eligible for reappointment, and shall not engage in any other business, vocation, or employment.

(d) Subject to the civil-service laws and the Classification Act of 1949, the Board may appoint and fix the compensation of a chief clerk and such examiners and other personnel as may be necessary for the performance of its functions.

(e) The Board may make such rules and regulations, not inconsistent with the provisions of this Act, as may be necessary for the performance of its duties.

POWERS AND DUTIES OF THE BOARD

SEC. 11. (a) It shall be the duty of the Board

(1) to prescribe such uniform rules, regulations, and forms as may be required for the submission by State tax authorities of claims for payments authorized by this Act;

(2) to promulgate such uniform rules and regulations as may be necessary to provide for the making by Federal agencies of the payment authorized by this Act and for the determination of the amounts thereof;

(3) to consult, at least once in each calendar year, with the advisory committee established under section 12 of this Act with respect to problems arising in the administration of this Act;

(4) upon application by any State tax authority or any Federal agency, to hear and determine any question of fact or law concerning (A) the liability of any Federal agency to make any payment under this Act, (B) the identity of Federal property subject to any payment under this Act, or (C) the amount of any such liability, except that no such question shall be heard or determined by the Board until the parties to such controvesy have exhausted administrative and judicial remedies available to them under law in effect within the jurisdiction of the State tax authority concerned for the determination of any question concerning the nominal Federal tax liability with respect to any property as to which such application is made; and

(5) to transmit to the President and to the Congress, as soon as may be practicable after the end of each calendar year, a written report containing a full and complete statement of its activties during such year, including

(A) The names, salaries, and duties of employees of the Board: 69937-56-pt. 1-3