§ 45-37.1-9. Exemption from taxation. (a) The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of this state, for the increase of their commerce, welfare and prosperity, and for the improvement of their health and living conditions, and will constitute the performance of an essential government function, and the corporation is not required to pay any taxes or assessments upon or in respect of a project, or any property or moneys of the corporation, levied by any municipality or political subdivision of the state, nor is the corporation required to pay state taxes of any kind, and the corporation, its projects, property, and moneys, and any bonds and notes issued under the provisions of this chapter, their transfer and the income from them, including any profit made on their sale, are at all times free from taxation of every kind by the state and by the municipalities and all other political subdivisions of the state, and the corporation is not required to pay any transfer tax of any kind on account of instruments recorded by or on its behalf or in connection with the financing of any of its projects; provided, that any person, partnership, corporation, or concern leasing a project from the corporation shall pay to the city, town, school district, or other political subdivision or special district having taxing powers, in which the project is located, a payment in lieu of taxes which equals the taxes on real and personal property which the lessee would have been required to pay, had it been the owner of the property during the period for which the payment is made, and under no circumstances are the corporation or its projects, properties, money, bonds, or notes obligated, liable, or subject to a lien of any kind for their enforcement, collection, or payment; and provided, further, that in the case of any person, partnership, corporation, or concern leasing a project from the corporation any such person, partnership, corporation or concern so leased shall be exempt from payment of state sales tax applicable to materials used in construction of such a facility only to the extent that the costs of such materials do not exceed the amount financed through the corporation.

(b) If and to the extent the proceedings under which the bonds or notes authorized to be issued under the provisions of this chapter so provide, the corporation may agree to cooperate with the lessee of a project in connection with any administrative or judicial proceedings for determining the validity or amount of payments, and may agree to appoint or designate and reserve the right in and for the lessee to take all action which the corporation may lawfully take in respect of those payments and all matters relating to them, provided, that the lessee bears and pay all costs and expenses of the corporation thereby incurred at the request of the lessee or by reason of any action taken by the lessee in behalf of the corporation. Any lessee of a project, which has paid the amounts in lieu of taxes required by the first sentence of this section, is not required to pay any taxes for which a payment in lieu thereof has been made to the state or to any city, town, school district, or other political subdivision or special district having taxing powers, notwithstanding any other statute to the contrary.

History of Section. (P.L. 1967, ch. 11, § 1; P.L. 1980, ch. 229, § 6; P.L. 2005, ch. 117, art. 16, § 8; P.L. 2006, ch. 246, art. 30, § 19; P.L. 2009, ch. 5, art. 11, § 2.)