TAX LIENS, ETC., NOT TO CONSTITUTE ACQUISITION INDEBTEDNESS.

SEC. 1308. TAX LIENS, ETC., NOT TO CONSTITUTE ACQUISITION INDEBTEDNESS. (a) General Rule.— Section 514(c)(2) (relating to property acquired subject to mortgages, etc.) is amended by adding at the end thereof the following new subparagraph: “(C) Liens for taxes or assessments.— Where State law provides that— “(i) a lien for taxes, or “(ii) a lien for assessments, made by a State or a political subdivision thereof attaches to property prior to the time when such taxes or assessments become due and payable, then such lien shall be treated as similar to a mortgage (within the meaning of subparagraph (A)) but only after such taxes or assessments become due and payable and the organization has had an opportunity to pay such taxes or assessments in accordance with State law.”. (b) Effective Date.— The amendment made by this section shall apply to taxable years ending after December 31, 1969.