§ 3019. — Taxation by State, county, etc., taxing authority; Federal tax status.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3019]
TITLE 12--BANKS AND BANKING
CHAPTER 31--NATIONAL CONSUMER COOPERATIVE BANK
SUBCHAPTER I--ESTABLISHMENT AND OPERATION
Sec. 3019. Taxation by State, county, etc., taxing authority;
Federal tax status
(a) The Bank, including its franchise, capital, reserves, surplus,
mortgages, or other security holdings and income shall be exempt from
taxation now or hereafter imposed by any State, county, municipality, or
local taxing authority, but any real property held by the Bank shall be
subject to any State, county, municipal, or local taxation to the same
extent according to its value as other real property is taxed.
(b) Notwithstanding any other provision of law, for purposes of
subchapter T of chapter 1 of title 26--
(1) the Bank shall be treated as a corporation operating on the
cooperative basis within the meaning of section 1381(a)(2) of title
26;
(2) the term ``patronage dividend'', as defined in section
1388(a) of title 26 includes, only as such section applies to the
Bank, any patronage refunds in the form of class B or class C stock
or allocated surplus that are distributed or set aside by the Bank
pursuant to section 3014(i) of this title;
(3) the terms ``written notice of allocation'' and ``qualified
written notices of allocation'', as defined in sections 1388(b) and
(c) of title 26, include (to the extent of par value), only as such
sections apply to the Bank, any class B or class C stock distributed
by the Bank pursuant to section 3014(i) of this title and shall also
include any allocated surplus set aside by the Bank pursuant to
section 3014(i) of this title;
(4) patrons of the Bank shall be deemed to have consented under
section 1388(c)(2) of title 26 to the inclusion in their incomes of
any qualified written notices of allocation received by such patrons
from the Bank; and
(5) any amounts required to be included in the incomes of
patrons of the Bank with respect to class B or class C stock or
allocated surplus shall be treated as earnings from business done by
such patrons of the Bank with or for their own patrons.
(Pub. L. 95-351, title I, Sec. 109, Aug. 20, 1978, 92 Stat. 509; Pub. L.
97-35, title III, Sec. 392(a), Aug. 13, 1981, 95 Stat. 434; Pub. L. 99-
514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.)
References in Text
Subchapter T of chapter 1 of title 26, referred to in subsec. (b),
is set out as section 1381 et seq. of Title 26, Internal Revenue Code.
Amendments
1986--Subsec. (b). Pub. L. 99-514 substituted ``Internal Revenue
Code of 1986'' for ``Internal Revenue Code of 1954'', which for purposes
of codification was translated as ``title 26'' thus requiring no change
in text.
1981--Pub. L. 97-35 designated existing provisions as subsec. (a),
struck out applicability of Final Government Equity Redemption Date to
provisions, and added subsec. (b).
Effective Date of 1981 Amendment
Section 392(b) of Pub. L. 97-35 provided that: ``The amendments made
by subsection (a) [amending this section] shall take effect on the day
after the Final Government Equity Redemption Date [Dec. 31, 1981].'' For
definition of ``Final Government Equity Redemption Date'', see section
396(a) of Pub. L. 97-35, set out as a note under section 3012 of this
title.
