§ 42-99-16 - Tax exemption.
SECTION 42-99-16
§ 42-99-16 Tax exemption. – (a) Any bonds, notes or other obligations issued by the corporation under theprovisions of this chapter, their transfer, and the income therefrom (includingany profits made on the sale thereof), shall at all times be free from taxationby the state or any political subdivision or other instrumentality of thestate, excepting estate taxes.
(b) The exercise of the powers granted by this chapter willbe in all respects for the benefit of the people of this state, the increase oftheir commerce, welfare, and prosperity and for the improvement of their healthand living conditions and will constitute the performance of an essentialgovernmental function, and the corporation shall not be required to pay anyreal and personal property taxes or assessments upon or in respect of theconvention center, civic center, and public garage portion of the project,levied by the municipality or any other political subdivision of the state;provided, that the corporation shall make payments in lieu of real and personalproperty taxes and assessments to the municipality and any other politicalsubdivisions with respect to the hotel, and office building portion of theproject owned by the corporation and located in the municipality and any otherpolitical subdivisions during the times that the corporation derives revenuefrom the lease or operation of the hotel, and office building portion of theproject. Those payments in lieu of taxes shall be in amounts agreed upon bythe corporation and the municipality and any other political subdivisions.Failing that agreement, the amounts of those payments in lieu of taxes shall bedetermined by the corporation using a formula that shall reasonably ensure thatthose amounts approximate the average amount of real and personal propertytaxes due throughout the municipality or political subdivision with respect tofacilities of a similar nature and size. In addition, the corporation shall notbe required to pay any payments to the municipality and any other politicalsubdivisions in the manner of a public safety payment for such servicesrendered to the corporation by the municipality and such subdivisions to thecivic center; provided, nothing herein shall preclude the municipality and anyother political subdivision from charging for contracted public safety servicesfor events at the civic center.