§ 45-37.1-9. Exemption from taxation.
(a) The exercise of the powers granted by this chapter will be in all respects for the
benefit of the people of this state, for the increase of their commerce, welfare and
prosperity, and for the improvement of their health and living conditions, and will
constitute the performance of an essential government function, and the corporation
is not required to pay any taxes or assessments upon or in respect of a project, or
any property or moneys of the corporation, levied by any municipality or political
subdivision of the state, nor is the corporation required to pay state taxes of any
kind, and the corporation, its projects, property, and moneys, and any bonds and notes
issued under 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 of every
kind by the state and by the municipalities and all other political subdivisions of
the state, and the corporation is not required to pay any transfer tax of any kind
on account of instruments recorded by or on its behalf or in connection with the financing
of any of its projects; provided, that any person, partnership, corporation, or concern
leasing a project from the corporation shall pay to the city, town, school district,
or other political subdivision or special district having taxing powers, in which
the project is located, a payment in lieu of taxes which equals the taxes on real
and personal property which the lessee would have been required to pay, had it been
the owner of the property during the period for which the payment is made, and under
no circumstances are the corporation or its projects, properties, money, bonds, or
notes obligated, liable, or subject to a lien of any kind for their enforcement, collection,
or payment; and provided, further, that in the case of any person, partnership, corporation,
or concern leasing a project from the corporation any such person, partnership, corporation
or concern so leased shall be exempt from payment of state sales tax applicable to
materials used in construction of such a facility only to the extent that the costs
of such materials do not exceed the amount financed through the corporation.
(b) If and to the extent the proceedings under which the bonds or notes authorized to
be issued under the provisions of this chapter so provide, the corporation may agree
to cooperate with the lessee of a project in connection with any administrative or
judicial proceedings for determining the validity or amount of payments, and may agree
to appoint or designate and reserve the right in and for the lessee to take all action
which the corporation may lawfully take in respect of those payments and all matters
relating to them, provided, that the lessee bears and pay all costs and expenses of
the corporation thereby incurred at the request of the lessee or by reason of any
action taken by the lessee in behalf of the corporation. Any lessee of a project,
which has paid the amounts in lieu of taxes required by the first sentence of this
section, is not required to pay any taxes for which a payment in lieu thereof has
been made to the state or to any city, town, school district, or other political subdivision
or special district having taxing powers, notwithstanding any other statute to the
contrary.