38 U.S.C. § 8167: Exemption from State and local taxes

38 U.S.C. 8167: Exemption from State and local taxesText contains those laws in effect through Public Law 119-120 (October 7, 2026).

From Title 38-VETERANS’ BENEFITSCHAPTER 81-ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY

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§8167. Exemption from State and local taxes

(a) Improvements and Operations Not Exempted.⁠—The improvements and operations on land leased by a person with an enhanced-use lease from the Secretary shall be subject to all applicable provisions of Federal, State, or local law relating to taxation, fees, and assessments.

(b) Underlying Fee Title Interest Exempted.⁠—The underlying fee title interest of the United States in any land subject to an enhanced-use lease shall not be subject, directly or indirectly, to any provision of State or local law relating to taxation, fees, or assessments.

(Added Pub. L. 102–86, title IV, § 401(a) , Aug. 14, 1991 , 105 Stat. 421 ; amended Pub. L. 112⁠—154, title II, § 211(h), Aug. 6, 2012 , 126 Stat. 1181 .)

Editorial Notes

Amendments

2012⁠—Pub. L. 112–154 amended section generally. Prior to amendment, section read as follows: “The interest of the United States in any property subject to an enhanced-use lease and any use by the United States of such property during such lease shall not be subject, directly or indirectly, to any State or local law relative to taxation, fees, assessments, or special assessments, except sales taxes charged in connection with any construction, alteration, repair, remodeling, or improvement project carried out under the lease.”