# 2866.14 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.