12 USC § 2098 - Taxation

---
identifier: "/us/usc/t12/s2098"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 2098 - Taxation"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "2098"
section_name: "Taxation"
chapter_number: 23
chapter_name: "FARM CREDIT SYSTEM"
subchapter_number: "II"
subchapter_name: "FARM CREDIT ASSOCIATIONS"
part_number: "B"
part_name: "Federal Land Bank Associations"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 92–181, title II, § 2.16, formerly § 2.17, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1637; renumbered § 2.16 and amended Pub. L. 100–399, title IV, § 401(w), (x), Aug. 17, 1988, 102 Stat. 999.)"
---


# § 2098. Taxation

31 U.S.C. 3124

Each Federal land bank association and the capital, reserves, and surplus thereof, and the income derived therefrom, shall be exempt from Federal, State, municipal, and local taxation, except taxes on real estate held by a Federal land bank association to the same extent, according to its value, as other similar property held by other persons is taxed. The mortgages held by the Federal land bank associations and the notes, bonds, debentures, and other obligations issued by the associations shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 ().

---

**Source Credit**: (Pub. L. 92–181, title II, § 2.16, formerly § 2.17, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1637; renumbered § 2.16 and amended Pub. L. 100–399, title IV, § 401(w), (x), Aug. 17, 1988, 102 Stat. 999.)

## Editorial Notes

### Prior Provisions

A prior section 2098, .17, , ; , , ; , , , related to taxation, prior to the general amendment of this subchapter by .

A prior section 2.16 of  was renumbered section 2.15 and is classified to .

### Amendments

1988—, substituted “derived therefrom, shall” for “derived therefrom shall”, “by the associations” for “by the banks”, and “3124” for “742(a)”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Amendment by  effective immediately after amendment made by , which was effective 6 months after , see , set out as a note under .

### Effective Date

, , , provided that this section is effective 6 months after .