§ 2676-o. Exemption from taxes, assessments and certain fees. 1. The
authority shall not be required to pay any fees, taxes, special ad
valorem levies, or assessments, whether state or local, including but
not limited to fees, taxes, special ad valorem levies, or assessments on
real property, franchise taxes, sales taxes, or other excise taxes, upon
any property owned by it or under its jurisdiction, control or
supervision, or upon the uses thereof, or upon its activities in the
operation and maintenance of its facilities or any rentals, rates,
charges, fees, revenues, or other income received by the authority.
Notwithstanding the previous sentence, the authority shall be required
to pay water and pure water fees or charges as may be negotiated by any
public corporation. The authority shall at all times be exempt from any
filing, mortgage recording, or transfer fees or taxes in relation to
instruments filed, recorded, or transferred by it or on its behalf. The
construction, use, occupation, or possession of any property owned by
the authority or the county, including improvements thereon, by any
person or public corporation under a lease, lease and sublease, or any
other agreement shall not operate to abrogate or limit the foregoing
exemption, notwithstanding that the lessee, user, occupant, or person in
possession shall claim ownership for federal income tax purposes.

2. Any bonds issued pursuant to this title together with the income
therefrom as well as the property of the authority shall at all times be
exempt from taxes, except for transfer and estate taxes. 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 and all revenues, monies, and other property pledged to secure
the payment of such bonds shall at all times be free from taxation,
except for transfer and estate taxes.