16 U.S.C. § 835c-1 : US Code - Section 835C-1: Taxation and assessments; applicability of State laws

Search 16 U.S.C. § 835c-1 : US Code - Section 835C-1: Taxation and assessments; applicability of State laws

(a) Payments in lieu of taxes
The Secretary may enter into agreements to pay annual sums in
lieu of taxes to any State or political subdivision thereof with
respect to any real property situated therein after it is acquired
pursuant to the authority of this Act and before execution by the
United States of a contract of sale covering it, out of funds
derived from the leasing of such lands. The amount so paid for any
year upon any such property shall not exceed the taxes that would
be paid to the State or subdivision as the case may be upon such
property if it were not exempt from taxation thereby.
(b) Lands acquired by United States
Any public lands within the project and any lands or interests in
lands acquired by the United States under this Act, beginning at
such date or dates and subject to such provisions and limitations
as may be fixed or provided by regulations made under section 8 [16
U.S.C. 835c-4], shall be (i) subject to the provisions of the laws
of the State of Washington relating to the organization,
government, and regulation of irrigation, reclamation, and
conservancy districts, and (ii) subject to legal assessment or
taxation by any such district, and to liens for such assessments
and taxes and to all proceedings for the enforcement thereof, in
the same manner and to the same extent as privately owned lands of
like character. The United States does not assume any obligation
for amounts so assessed or taxed; and any proceedings to enforce
them shall be subject to any title then remaining in the United
States, to any prior lien reserved to the United States for unpaid
installments under land sale contracts made under this Act, and to
any lien for any other charges, accrued or unaccrued, under and by
virtue of such contracts or any contract between the United States
and the district in which the land is located.
(c) Sale of project lands
In addition to taxation or assessment under subsection (b) of
this section upon execution by the United States of a contract of
sale of any lands within the project, the lands under contract may
be taxed by the State or political subdivision thereof in the same
manner and to the same extent as privately owned lands of a like
character. All taxes legally so assessed may be enforced in the
same manner and under the same proceeding whereby said taxes are
enforced against privately owned lands, subject to the limitations
in favor of the United States that govern the enforcement of
district assessments or taxes as provided in subsection (b) of this
section. If lands under any such contract shall at any time revert
to the United States before transfer of title under the contract by
reason of default thereunder, all liens or tax titles resulting
from taxes levied pursuant to the authority of this subsection upon
such lands shall be thereupon extinguished; and the levying of any
such tax by such State or political subdivision shall be deemed to
be an agreement on its part, in the event of such reversion, to
execute and record a formal release of such line or tax title.