Does the federal government pay property taxes or PILT on property leased from the private sector?
A. The federal government pays rent to landlords for property or space leased on behalf of federal departments but the landlords, alone, are responsible for paying any real property taxes on their property. The federal government cannot pay property taxes directly, as it is constitutionally exempt from taxation. Therefore, the landlord must contract for sufficient rent and recoveries to cover any costs associated with real property taxes on federally occupied property.
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- Does the federal government pay property taxes or PILT on property leased from the private sector?