[Federal Register Volume 79, Number 11 (Thursday, January 16, 2014)]
[Notices]
[Pages 2927-2928]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00735]


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DEPARTMENT OF STATE

[Public Notice 8597; No. FMA-2014-1]


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 after 
due consideration of the benefits, privileges, and immunities provided 
to missions of the United States abroad, as well as matters related to 
the protection of the interests of the United States, I hereby 
designate as a benefit for purposes of the Act: exemption from taxes 
associated with the purchase, ownership, and disposition of real 
property, other than such as represent payment for specific services 
rendered (hereinafter collectively referred to as ``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--by a foreign mission on the 
basis of the property's authorized use for diplomatic or consular 
purposes or by an international organization on the basis of the 
property's authorized use for the official business of the 
organization.
    Exemption from real estate taxes on the basis of a property's 
authorized use for diplomatic or consular purposes or for the official 
business of an international organization is available to a foreign 
mission or international organization only with respect to property 
authorized by the Department of State's Office of Foreign Missions 
(OFM) for use as:
    1. the premises of a bilateral diplomatic mission or consular post, 
headed by a career consular officer, that is owned by the respective 
foreign government or the head of the mission or consular post;
    2. the premises of a consular post, headed by an honorary consular 
officer, that is owned by the respective foreign government;
    3. the primary residence of the head of a bilateral diplomatic 
mission or a career head of a consular post, that is owned by the 
respective foreign government or the head of the mission or consular 
post;
    4. the primary residence of a member or members of the staff of a 
bilateral diplomatic mission or career consular post, that is owned by 
the respective foreign government;
    5. the premises of the Organization of American States (OAS) or the 
United Nations (UN), that is owned by the respective organization;
    6. the primary residence of the head (Secretary General) of the OAS 
Secretariat or the UN Secretariat, that is owned by the respective 
organization;
    7. the primary residence of a member or members of the staff of the 
OAS or the UN, that is owned by the respective organization;
    8. the premises of a permanent mission to the OAS or the UN, that 
is owned by the respective foreign government;
    9. the primary residence of a principal representative or resident 
representative of a permanent mission to the OAS or the UN with a rank 
of ambassador or minister plenipotentiary, that is owned by the 
respective foreign government;
    10. the primary residence of a member or members of the staff of a 
permanent mission to the OAS or the UN, that is owned by the respective 
foreign government;
    11. the premises of an observer mission to the OAS or the UN of a 
state recognized by the United States, that is owned by the respective 
foreign government;
    12. the primary residence of a principal representative or resident 
representative of an observer mission to the OAS or the UN of a state 
recognized by the United States with a rank of ambassador or minister 
plenipotentiary, that is owned by the respective foreign government;
    13. the primary residence of a member or members of the staff of an 
observer mission to the OAS or the UN of a state recognized by the 
United States, that is owned by the respective foreign government;
    14. the premises of an international organization designated under 
the International Organization Immunities Act (IOIA), other than the 
OAS or UN, that is owned by the respective organization and is located 
in the District of Columbia;
    15. the primary residence of the head of an international 
organization designated under the IOIA, other than the OAS or UN, that 
is owned by the respective organization and is located in the District 
of Columbia;
    16. the primary residence of a member or members of the staff of an 
international organization designated under the IOIA, other than the 
OAS or UN, that is owned by the respective organization and is located 
in the District of Columbia;
    17. a residence used for temporarily lodging representatives or 
employees of a government of a state recognized by the United States, 
who visit the United States for bilateral or multilateral diplomatic or 
consular purposes, that is owned by the respective foreign government; 
or
    18. another category of property authorized by OFM.
    Property that is owned by a foreign government or international 
organization for the purpose of constructing or renovating facilities 
and that OFM has authorized for use for any of the purposes described 
above is eligible for an exemption from real estate taxes, provided 
that OFM authorized the acquisition of such property.
    I similarly designate as a benefit for purposes of the Act an 
exemption from real estate taxes on mission premises and residences 
described above that are in the custody or control of the United States 
pursuant to 22 U.S.C. 4305(c).
    I determine that exemption from real estate taxes on the basis of a 
property's authorized use for diplomatic or consular purposes or for 
the official business of an international organization shall be 
provided on such terms and conditions as OFM may approve. The manner in 
which such benefits 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 foreign missions and 
international organizations on the basis of a property's authorized use 
for diplomatic or consular purposes or for the official business of an 
international organization:
     The determination of a foreign mission or international 
organization'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

[[Page 2928]]

diplomatic or consular purposes, or for the official business of an 
international organization, is committed to the sole discretion of the 
Department of State. Such determinations are communicated by letter 
from OFM 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, Tax, 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 transaction is or is not entitled to an exemption from real estate 
taxes on the basis of the property's authorized use for diplomatic or 
consular purposes or for the official business of an international 
organization.
     States, counties, municipalities, and territories are 
prohibited from extending to a foreign mission or international 
organization an exemption from real estate taxes associated with a 
property on the basis of the property's authorized use for diplomatic 
or consular purposes or for the official business of the international 
organization, 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 a foreign mission or international organization an exemption 
from real estate taxes to which OFM determines a foreign mission or 
international organization is entitled. If a state, county, 
municipality or territory has concerns regarding the extension of such 
exemption benefits, 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 a foreign mission or 
international organization and not as a means to determine the foreign 
mission's or international organization's entitlement to the exemption 
benefit associated with a property on the basis of the property's 
authorized use for diplomatic or consular purposes or for the official 
business of the international organization, 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 foreign missions or international 
organizations.
    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 any foreign mission or international organization 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 any foreign mission or international organization regarding such 
property. These actions are not exclusive and are independent of 
alternative legal grounds that support the tax exemption afforded 
herein.
    The actions taken in this Designation and Determination are 
necessary to facilitate relations between the United States and foreign 
states, protect the interests of the United States, adjust for costs 
and procedures of obtaining benefits for missions of the United States 
abroad, and carry out the policy set forth in 22 U.S.C. 4301(b).
    This action supersedes the Designation and Determination under the 
Foreign Missions Act made by the Deputy Secretary of State for 
Management and Resources on June 23, 2009.

    Dated: January 8, 2014.
Patrick F. Kennedy,
Under Secretary for Management.
[FR Doc. 2014-00735 Filed 1-15-14; 8:45 am]
BILLING CODE 4710-35-P