Under what circumstances am I exempt from paying rent?

(a) You are exempt from rent under this part if: (1) You are a Federal, State, or local governmental entity (except as provided by paragraph (b) of this section); (2) You have been granted an exemption under a statute providing for such; or (3) Your facilities were financed in whole or in part, or are eligible for financing, under the Rural Electrification Act of 1936, as amended (REA) (7 U.S.C. 901 et seq. ) or are extensions of such facilities. However, when a holder who is exempt from rent under REA adds non-eligible tenant uses on the authorization, the holder will become subject to rent in accordance with §§ 2866.30 through 2866.44. (b) Exceptions: (1) The exemptions in this section do not apply if you are in trespass. (2) If you are a governmental entity, you are not exempt from rent when: (i) The facility, system, space, or any part of the authorization is being used for commercial purposes; (ii) You are a municipal utility or cooperative whose principal source of revenue is customer charges; or (iii) You charge the United States rent for occupancy within or on your facility beyond standard operation and maintenance fees.