Author: Erika K. Lunder
he question has recently arisen as to whether Fannie Mae and Freddie Mac are subject to state and local taxes imposed on the transfer of property. They have historically not paid these taxes, in part under the theory that their federal charters provide an exemption. The charters of Fannie Mae and Freddie Mac expressly provide that they are ?exempt from all taxation? by state and local governments, although their real property is subject to tax ?to the same extent according to its value as other real property is taxed.?