* § 1199-nn. 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 provided, however, that any real property owned or acquired
by the authority outside of the district shall be exempt from real
property taxes, ad valorem levies or special assessments only pursuant
to and to the extent provided by an agreement with the governing body of
the municipality in which such real property is located.

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 such taxation as aforestated in such
subdivision.

* NB There are 2 § 1199-nn's