Montana Attorney General Opinion 15-648

Opinion No. 648 TaiX3tion-Federal Subsistence Home- ,stead Corporation-Exemption From Taxation. HELD; Lalllis purchased by the J!'ed- eral Subsistence Homestead Corpora- tion, with the view of placing owners of submarginal lands thereon, are not subject to taxation. November 28, 1934. According to your request for our opUllon, you have advised the county assessor of Phillips County that cer- tain lands therein recently purchased by the Federal Subsistence Homestead Corporation, with the view oI placing owners of submarginal lands thereon, are not subject to taxation and should be omitted from the assessment roll. You ask us to approve the advice so given, if we may. Sections 208 and 209, Title II, of the National Industrial Hecovery Act of 11)33, are as follows: "To provide for aiding the redistri- bution of the onrbalance (If popula- tion in industrial centers $25,000,000 is hereby made a\'ailable to the Presi- dent, to be used by him through such agencies as he may establish and under such regulations as he may make, for making loans for and other- wise aiding in the purchase of sub- sistence homesteads. The moneys col- lected as repayment of said loans shall constitute a revoh'ing fund to be ad- ministered as directed by the Presi- dent for the purposes of this section. "The President is authorized to pre- scribe such rules and regulations a8 may be necessary to carry out the purposes of this title, and any viola- tion of any such rule or regulation shall be punishable by fine of not to exceed $500 or imprisonment not to exceed six months, or both." In order to effectuate the intent and purpose of Congress as expressed in Section 208, the President promulgated an order authorizing the Secretary of the Interior to exercise all the powers vested in him, for the purpose of ad- ministering all the provisions of said section, including full authority to des~ ignate and appoint such agents, to set up such boards and agencies, and to make and promulgate, such regulations as he may deem necessary or desirable. In making loans and otherwise aid- ing in the purchase of subsistence home- steads the administrator ma~" take title to homestead sites 'in the name of the United States or in the name of a cor- poration organized for such purpose, and enter into contracts for the sale of homestead sites to prospective set- tlers. (Opinion of Attorney General, March 19, 1934.) The Federal Suusistence Homestead Corporation is, doubtless, an instru- mentality of the government under the direction and control of the President. (Skinner & Eddy Corp. v. McCarl, 275 U. S. 1, 72 L. Ed. 131; United States v. Clallam County, 283 I<'ed. 645, aff. 263 U. S. 341, 68 L. Ed. 328; Hussell Wheel & Foundry CO. Y. United States, :31 I<'ed. (2d) 826; North Dakota-Mon- tana 'V. G. Ass'n. v. United States, 66 Fed. (2d) 573.) All property of the United States is exempt from taxation (Ford v. Great Falls, 46 1\font. 292; 61 C. J. 360; 1\font. Const., Ord. 1, Subd. 2, Id., Art. XII, sec. 2; Rev. Codes 1921, sec. 1998), and, unless Congress otherwise determines, this immunity extends to property of a governmental instrumentality or agency. (Ford v. Great Falls, above; SwordS V. Simineo, 68 1\font. 164; 61 C .. J. 371.) Congress, we feel certain, has not legislated with regard to the taxation of property ac- quired by the Federal Subsistence Homestead Corporation. 'Ve, therefore, think ~'ou were right in adviSing the county assessor as you did.