§ 1149-m. Exemption from taxes, assessments and certain fees; payments
in lieu of taxes. 1. It is hereby determined that the creation of the
authority and the carrying out of its corporate purposes is in all
respects for the benefit of the people of the county and the state and
is a public purpose, and the authority shall be regarded as performing a
governmental function in the exercise of the powers conferred upon it by
this title and shall not be required to pay any taxes, special ad
valorem levies or special assessments upon any real property owned by it
or any filing, recording or transfer fees or taxes in relation to
instruments filed, recorded or transferred by it or on its behalf.

2. The authority may pay, or may enter into agreements with any
municipality not located within the county to pay, a sum or sums
annually or otherwise or to provide other considerations to such
municipality with respect to real property owned by the authority
located within such municipality and constituting a part of its water or
sewerage system.

3. Any bonds issued pursuant to this title together with the income
therefrom shall be exempt from taxation except for transfer and estate
taxes. The revenues, moneys and all other property and all activities of
the authority shall be exempt from all taxes and governmental fees or
charges, whether imposed by the state or any municipality, including
without limitation real estate taxes, franchise taxes, sales taxes or
other excise taxes.

4. The state hereby covenants with the purchasers and with all
subsequent holders and transferees of bonds issued by the authority
pursuant to this title, in consideration of the acceptance of and
payment for the bonds, that the bonds of the authority issued pursuant
to this title and the income therefrom shall be exempt from taxation as
aforestated in subdivision three of this section, and that all revenues,
moneys, and other property pledged to secure the payment of such bonds
shall at all times be free from taxation as aforestated in such
subdivision.