§ 46-15.1-14 - Exemption from taxation.
SECTION 46-15.1-14
§ 46-15.1-14 Exemption from taxation.– (a) The exercise of the powers granted by this chapter shall be in all respectsfor the benefit of the people of the state, and for the improvement of theirhealth and living conditions, and the purchase, lease, operation, andmaintenance of projects by the board under this chapter will constitute theperformance of essential governmental functions. The board shall not berequired to pay any taxes or assessments upon any property acquired or used bythe board hereunder or upon its income, existence, or franchise hereunder, andthe bonds and notes issued by the board hereunder and the interest thereonshall be exempt from taxation in the state. Sales to the board hereunder shallnot be subject to any sales or similar tax, and the use of property by theboard hereunder shall not be subject to any use or similar tax. The lease ofproperty of the board to others hereunder for water supply purposes, contractsfor the use by others, and the use thereof by the lessees or others contractingwith the board, shall not be subject to any sales, use, or similar tax, and thelessees or other users under the contracts shall not be required to pay anyproperty taxes or assessments on the property except as provided below.
(b) Except as to property leased to others, the board shallpay annually from its revenues hereunder, after first providing for debtservice and other expenses and reserve requirements required by an applicabletrust agreement or bond or note resolution to be met from current revenues, toeach city, town, or district, a sum of money, in lieu of property taxes on itsproperty hereunder, equal to any property tax levied on the property by thecity, town, or district during the year next preceding the acquisition of theproperty by the board. As to property leased to others, the lessee shall paysuch amount, except to the extent that provision is made in the lease forpayment by the board, under the terms set forth in the foregoing sentence.