Generally, federal property is taxable by the State or its localities only in instances where Congress has specifically consented or authorized such
taxes being paid. Meade Heights, Inc. v. State Tax Comm'n, 202 Md. 95 A.2d 280 (1953)
In the cases of mortgage defaults under the FHA, VA and Farmers Home Administration programs where the respective agency forecloses on the property, Congress has
consented to such properties being kept on the taxable rolls.
There is a different statutory provision for foreclosures by the Small Business Administration. Accordingly, each local Supervisor of Assessments is required to
forward any inquiries about the status of SBA foreclosed property directly to the Administrator of the Tax Credit and Exempt Property Division in the central office.
The Administrator shall in turn advise the local Supervisor of the taxable status of any particular property. The SBA has requested from this Department that it be
granted permission to forward any exemption applications to a single central source which in this case is the Administrator of the Tax Credit and Exempt Property
Division. The basic legal policy is that SBA foreclosed property shall be exempt for the current taxable year provided the SBA took title to the property on or
before July 1 of that taxable year. In the event that title is taken upon any date after July 1, the property will remain taxable for that entire taxable year
and no proration of tax liability may occur.
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