§ 45-37.1-9 - Exemption from taxation.
SECTION 45-37.1-9
§ 45-37.1-9 Exemption from taxation.– (a) The exercise of the powers granted by this chapter will be in all respectsfor the benefit of the people of this state, for the increase of theircommerce, welfare and prosperity, and for the improvement of their health andliving conditions, and will constitute the performance of an essentialgovernment function, and the corporation is not required to pay any taxes orassessments upon or in respect of a project, or any property or moneys of thecorporation, levied by any municipality or political subdivision of the state,nor is the corporation required to pay state taxes of any kind, and thecorporation, its projects, property, and moneys, and any bonds and notes issuedunder 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 ofevery kind by the state and by the municipalities and all other politicalsubdivisions of the state, and the corporation is not required to pay anytransfer tax of any kind on account of instruments recorded by or on its behalfor in connection with the financing of any of its projects; provided, that anyperson, partnership, corporation, or concern leasing a project from thecorporation shall pay to the city, town, school district, or other politicalsubdivision or special district having taxing powers, in which the project islocated, a payment in lieu of taxes which equals the taxes on real and personalproperty which the lessee would have been required to pay, had it been theowner of the property during the period for which the payment is made, andunder no circumstances are the corporation or its projects, properties, money,bonds, or notes obligated, liable, or subject to a lien of any kind for theirenforcement, collection, or payment; and provided, further, that in the case ofany person, partnership, corporation, or concern leasing a project from thecorporation any such person, partnership, corporation or concern so leasedshall be exempt from payment of state sales tax applicable to materials used inconstruction of such a facility only to the extent that the costs of suchmaterials do not exceed the amount financed through the corporation.
(b) If and to the extent the proceedings under which thebonds or notes authorized to be issued under the provisions of this chapter soprovide, the corporation may agree to cooperate with the lessee of a project inconnection with any administrative or judicial proceedings for determining thevalidity or amount of payments, and may agree to appoint or designate andreserve the right in and for the lessee to take all action which thecorporation may lawfully take in respect of those payments and all mattersrelating to them, provided, that the lessee bears and pay all costs andexpenses of the corporation thereby incurred at the request of the lessee or byreason of any action taken by the lessee in behalf of the corporation. Anylessee of a project, which has paid the amounts in lieu of taxes required bythe first sentence of this section, is not required to pay any taxes for whicha payment in lieu thereof has been made to the state or to any city, town,school district, or other political subdivision or special district havingtaxing powers, notwithstanding any other statute to the contrary.