[Federal Register Volume 79, Number 56 (Monday, March 24, 2014)]
[Notices]
[Pages 16090-16091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-06416]
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DEPARTMENT OF STATE
[Public Notice 8670]
Designation and Determination under the Foreign Missions Act
Pursuant to the authority vested in the Secretary of State by the
laws of the United States, including the Foreign Missions Act (codified
at 22 U.S.C. 4301-4316) (hereinafter ``the Act''), and delegated by the
Secretary to me as the Under Secretary of State for Management in
Delegation of Authority No. 198, dated September 16, 1992, and
consistent with the Taiwan Relations Act (codified at 22 U.S.C. 3301-
3316), I hereby determine that the Taipei Economic and Cultural
Representative Office in the United States (hereinafter, ``TECRO''),
including its real property and personnel, is a ``foreign mission''
within the meaning of section 202(a)(3) of the Act (22 U.S.C.
4302(a)(3)).
TECRO consists of its primary office, located in the District of
Columbia, and its subsidiary offices known as Taipei Economic and
Cultural Offices, located in Atlanta, Boston, Chicago, Guam, Honolulu,
Houston, Kansas City, Los Angeles, Miami, New York, San Francisco,
Seattle, and such additional locations as may be agreed upon between
the American Institute in Taiwan (hereinafter, ``AIT'') and TECRO.
I further determine that TECRO's primary office in the District of
Columbia used for the performance of TECRO's authorized functions, and
annexes to such office (including ancillary offices and support
facilities), and including the site and any building on such site which
is used for such functions, is a ``chancery'' for purposes of 22 U.S.C.
4306.
After due consideration of the benefits, privileges, and immunities
provided to AIT, as well as matters related to the protection of the
interests of the United States, on the basis of reciprocity between AIT
and TECRO, I hereby designate the following as benefits for purposes of
the Act:
For TECRO designated employees, exemption from all taxes
and dues imposed by state, county, municipality and territorial
authorities in the United States in connection with the ownership or
operation of a motor vehicle;
For qualifying dependents of a TECRO designated employee,
exemption from state, county, municipality and territorial sales or
other similarly imposed consumption taxes in the United States, except
those normally included in the price of goods and services, or charges
for specific services rendered; and
Exemption from state, county, municipal and territorial
taxes in the United States (``real estate taxes'')--including, but not
limited to, annual property tax, recordation tax, transfer tax, and the
functional equivalent of deed registration charges and stamp duties--on
the basis of real property's authorized use for the performance of
TECRO's authorized functions and for which TECRO would otherwise be
liable.
For purposes of this determination, the term ``TECRO designated
employees'' means persons duly notified to and accepted by AIT as
designated employees of TECRO at its primary office or one of its
subsidiary offices, including the heads of such offices. It shall not
apply with respect to any person who is a national of, or is
permanently resident in, the United States.
I determine that TECRO is required to obtain the exemption of real
estate taxes through the Department of State's Office of Foreign
Missions (OFM) and that any tax exemption designated as a benefit in
this determination shall be provided on such terms and conditions as
OFM may approve. The manner in which an exemption from real estate
taxes shall be extended by states, counties, municipalities, and
territories shall also be subject to such terms and conditions as OFM
may approve.
Following are the current terms and conditions governing the
provision of exemptions from real estate taxes to TECRO on the basis of
a property's authorized use for the performance of TECRO's authorized
functions:
Such property must be:
[cir] the premises of TECRO's primary office or one of its
subsidiary offices, that is owned by TECRO's primary office, one of its
subsidiary offices, the head of such an office, a component of such an
office, or the authorities on Taiwan;
[cir] the primary residence of the head of TECRO primary office or
one of its subsidiary offices, that is owned by TECRO's primary office,
one of its subsidiary offices, the head of such an office, a component
of such an office, or the authorities on Taiwan;
[cir] the primary residence of a member of the staff of TECRO's
primary office or one of its subsidiary offices, that is owned by
TECRO's primary office, one of its subsidiary offices, a component of
such an office, or the authorities on Taiwan;
[cir] a residence for temporarily lodging representatives or
employees of the authorities on Taiwan who visit the United States in
connection with the performance of TECRO's authorized functions, that
is owned by TECRO's primary office, one of its subsidiary offices, a
component of such an office, or the authorities on Taiwan; or
[cir] owned by TECRO's primary office, one if its subsidiary
offices, a component of such an office, or the authorities on Taiwan
for the purpose of constructing or renovating facilities that will be
used for the performance of TECRO's authorized functions, provided that
OFM authorized the acquisition of such property.
The determination of TECRO's entitlement to an exemption
from real estate taxes associated with a property of a type described
above, on the basis of the property's authorized use for the
performance of TECRO's authorized functions, is committed to the
discretion of the Department of State, in consultation with AIT. Such
determinations are made by OFM and are communicated by letter to the
relevant state, county, municipal or territorial revenue authorities.
All such letters will be signed by the Director of OFM's
Office of Diplomatic Property, Taxes, Services and Benefits (OFM/PTSB),
or a successor office.
Such letters serve as official notice to the relevant
state, county, municipality, or territory that the described property,
or acquisition or disposition thereof, is or is not entitled to an
exemption from real estate taxes on the basis of the property's
authorized use for the performance of TECRO's authorized functions.
States, counties, municipalities, and territories are
prohibited from extending to TECRO an exemption from real estate taxes
associated with a property on the basis of the property's authorized
use for the performance of TECRO's authorized functions, except on the
basis of written authorization from OFM.
Conversely, on the basis of a letter as described above,
states, counties, municipalities, and territories are required to
extend to TECRO an exemption from real estate taxes to which OFM
determines TECRO is entitled. If a state, county, municipality or
territory has concerns regarding the
[[Page 16091]]
extension of such exemption benefits, then it should raise the matter
directly with OFM.
Unless otherwise determined by OFM, the effective date of
OFM's authorization of an exemption from real estate taxes is the date
the property deed in question is signed or transferred.
States, counties, municipalities, and territories may
establish additional procedures to ensure the proper extension of such
exemption benefits, provided that:
[cir] such procedures, including the establishment and use of any
forms, serve only to facilitate the state, county, municipality, or
territory's extension of exemption benefits to TECRO and not as a means
to determine the TECRO's entitlement to the exemption benefit
associated with a property on the basis of the property's authorized
use for the performance of TECRO's authorized functions, which
determination is committed to the sole discretion of the Department of
State; and
[cir] the state, county, municipality, or territory obtain written
approval from the Director of OFM/PTSB confirming that the proposed
procedural requirements do not violate or infringe on any benefits,
privileges, or immunities enjoyed by TECRO.
Finally, I further determine that any state or local laws to the
contrary are hereby preempted.
The exemption from real estate taxes provided by this designation
and determination shall apply to taxes that have been or will be
assessed against TECRO's primary office, one of its subsidiary offices,
the head of such an office, a component of such an office, or the
authorities on Taiwan with respect to property subject to this
determination, and shall nullify any existing tax liens with respect to
any covered property. This determination shall not require the refund
of any taxes previously paid by TECRO's primary office, one of its
subsidiary offices, the head of such an office, a component of such an
office, or the authorities on Taiwan regarding such property. These
actions are not exclusive and are independent of alternative legal
grounds that support the tax exemptions afforded herein.
The actions taken in this Designation and Determination are
necessary to protect the interests of the United States and to adjust
for costs and procedures of obtaining benefits for AIT.
Dated: March 9, 2014.
Patrick F. Kennedy,
Under Secretary for Management.
[FR Doc. 2014-06416 Filed 3-21-14; 8:45 am]
BILLING CODE 4710-35-P