Sec. 22a-514. Regional water pollution control authorities: Tax exemption.
Sec. 22a-514. Regional water pollution control authorities: Tax exemption. (a)
The exercise of the powers granted by sections 22a-500 to 22a-519, inclusive, shall
constitute the performance of an essential governmental function and the authority shall
not be required to pay any taxes or assessments upon or in respect of a wastewater
system, or any property or moneys of the authority, levied by any municipality or political subdivision or special district having taxing powers of the state, nor shall the authority
be required to pay state taxes of any kind, and the authority, its wastewater system,
property and money and any bonds issued under the provisions of sections 22a-500 to
22a-519, inclusive, their transfer and the income therefrom, including revenues derived
from the sale thereof, shall at all times be free from taxation, except for estate and gift
taxes imposed by the state or any political subdivision thereof but the interest on such
bonds shall be included in the computation of any excise or franchise tax. Nothing in
this section shall prevent the authority from entering into agreements to make payments
in lieu of taxes with respect to property acquired by it or by any person leasing a wastewater system from the authority or operating or managing a wastewater system on behalf
of the authority and neither the authority nor its wastewater systems, properties, money
or bonds shall be obligated, liable or subject to lien of any kind for the enforcement,
collection or payment thereof. If and to the extent the proceedings under which the
bonds authorized to be issued under the provisions of sections 22a-500 to 22a-519,
inclusive, so provide, the authority may agree to cooperate with the lessee or operator
of a wastewater system in connection with any administrative or judicial proceedings
for determining the validity or amount of such payment and may agree to appoint or
designate and reserve the right in and for such lessee or operators to take all action which
the authority may lawfully take in respect of such payments and all matters related
thereto, providing such lessee or operator shall bear and pay all costs and expenses of
the authority thereby incurred at the request of such lessee or operator or by reason of
any such action taken by such lessee or operator on behalf of the authority. Notwithstanding any other provision of law, any lessee or operator of a wastewater system for which
a payment in lieu of taxes has been made under this section shall not be required to pay
any taxes in which a payment in lieu thereof has been made to the state or to any such
municipality or other political subdivision or special district having taxing powers.
(b) Any real or personal property leased by the authority in connection with the
operation of a wastewater system under the provisions of sections 22a-500 to 22a-519,
inclusive, which would otherwise be subject to taxation under chapter 203 shall be
exempt from the assessment of property taxes permitted and required under said chapter
if such real or personal property is the subject of an agreement to make payments in
lieu of taxes with respect to such property between the authority or the lessee of such
system and the municipality in which such system is located. Any lessee or operator of
such system from such authority who has made any payment of taxes due under such
agreement shall not be required to make any payment of taxes of which a payment in
lieu thereof has been made to the municipality.
(P.A. 95-329, S. 24, 31.)
History: P.A. 95-329, S. 24 effective July 13, 1995.