[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