RTC Sets Policy on Local Taxes

WASHINGTON -- The Resolution Trust Corp. board has approved a policy covering the payment of local and state real estate taxes on properties held by the federal agency, which is selling the property of failed thrifts.

The action updates and makes permanent an interim policy governing tax remittances on RTC properties since 1989.

The tax policy will not be markedly different from past RTC practices. An RTC official said one of the main differences affects the annual interest the agency pays on back taxes owed.

The RTC was paying 8%, but in the future it will pay a rate determined by the state, though it reserves the right to challenge any rate it deems excessive.

The policy also makes clear that the RTC is not liable for any fines or penalties related to tax payments.

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