Sec. 7-273mm. Exemptions from taxes. Payments in lieu of taxes.
Sec. 7-273mm. Exemptions from taxes. Payments in lieu of taxes. (a) The exercise of the powers granted by this chapter 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 to a project, 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 projects, property and money and the principal and interest of bonds issued
under the provisions of this chapter, 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. Nothing
herein 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 project
from the authority or operating or managing a project on behalf of the authority and
neither the authority nor its projects, 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 this chapter so provide, the authority may agree to cooperate with
the lessee or operator of a project 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
relating 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.
Any lessee or operator of a project which has paid the amounts in lieu of taxes permitted
by this section to be paid shall not be required to pay any such 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, any other law to the contrary notwithstanding.
(b) Any real or personal property leased by the authority in connection with the
operation of a project under the provisions of this chapter 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 203 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 project and the municipality in
which such project is located. Any lessee or operator of such project from such authority
who has made any payment of taxes due under such agreement shall not be required to
make any payment of taxes on which a payment in lieu thereof has been made to the
municipality.
(P.A. 81-213, S. 15, 18; P.A. 85-478, S. 8, 10; P.A. 89-331, S. 5, 30.)
History: P.A. 85-478 struck previous language and inserted more specific language relating to exemptions from taxes
and agreements for payments in lieu of taxes; P.A. 89-331 clarified the exemption from taxation of the principal and interest
of the bonds.