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[Federal Register Volume 74, Number 126 (Thursday, July 2, 2009)]
[Notices]
[Page 31788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15818]

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DEPARTMENT OF STATE

[Public Notice 6690]

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, 22 
U.S.C. 4301 et seq., and delegated by the Secretary to me as one of the 
President's principal officers for foreign affairs by Delegation of 
Authority No. 245-1 of February 13, 2009, and at the direction of the 
Secretary of State, 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, and at the request of foreign missions, I hereby 
designate exemption from real property taxes on property owned by 
foreign governments and used to house staff of permanent missions to 
the United Nations or the Organization of American States or of 
consular posts as a benefit for purposes of the Foreign Missions Act. I 
further determine that such exemption shall be provided to such foreign 
missions on such terms and conditions as may be approved by the Office 
of Foreign Missions and that any state or local laws to the contrary 
are hereby preempted. Prior inconsistent guidance is hereby rescinded. 
This action is in accord with the tax treatment of foreign government-
owned property in the United States used as residences for staff of 
bilateral diplomatic missions, see Department of State, Notice: 
Property Owned by Diplomatic Missions and Used to House the Staff of 
Those Missions is Exempt from General Property Taxes, 51 FR 27303 (July 
30, 1986), and conforms to the general practice abroad of exempting 
government-owned property used for bilateral or multilateral diplomatic 
and consular mission housing.
    This action is necessary to facilitate relations between the United 
States and foreign states, to protect the interests of the United 
States, to allow for a more cost effective approach to obtaining 
benefits for U.S. missions abroad, and to assist in resolving a dispute 
affecting U.S. interests and involving foreign governments which assert 
that international law requires the exemption from taxation of such 
diplomatic and consular properties. The dispute has become a major 
irritant in the United States' bilateral relations and threatens to 
cost the United States hundreds of millions of dollars in reciprocal 
taxation. As the largest foreign-government property owner overseas, 
the United States benefits financially much more than other countries 
from an international practice exempting staff residences from real 
property taxes, and it stands to lose the most if the practice is 
undermined. Responsive measures taken against the United States because 
of the dispute also have impeded significantly the State Department's 
ability to implement urgent and congressionally mandated security 
improvements to our Nation's diplomatic and consular facilities abroad, 
imposing unacceptable risks to the personnel working in those 
facilities. This action will allow the United States to press forward 
with improvements that will protect those who represent the Nation's 
interests abroad.
    The exemption from real property taxes provided by this designation 
and determination shall apply to taxes that have been or will be 
assessed against any foreign government with respect to property 
subject to this determination, and shall operate to nullify any 
existing tax liens with respect to such property, but shall not operate 
to require refund of any taxes previously paid by any foreign 
government regarding such property. These actions are not exclusive and 
are independent of alternative legal grounds that support the tax 
exemption afforded herein.

    June 23, 2009.
Jacob J. Lew,
Deputy Secretary of State for Management and Resources, Department of 
State.
[FR Doc. E9-15818 Filed 7-1-09; 8:45 am]
BILLING CODE 4710-43-P
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