Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2017
Property Tax Annotations
660.0000 POSSESSORY INTEREST
660.0172 Military Privatization Housing. Under the Department of the Army's Residential Communities Initiative (RCI) program, the federal government and a private contractor created a limited liability company (LLC) to finance, design, construct, manage, operate, maintain, and repair military family housing. Under the operating agreement, the federal government leased federal land with existing military housing to the LLC for a 50-year term; the LLC provided property management, maintenance, and operation services for a military residential development; and, the LLC will construct new housing units on the land.
The elements of control exercised by the federal government pursuant to the lease and operating agreement made the LLC an agent of the federal government. The LLC's use and occupancy of the land lacked the degree of independence sufficient to constitute a taxable possessory interest. Therefore, for property tax purposes, ownership of the property remains in the federal government so the property is immune from property taxation. C 4/18/2003.