Section 1199-OO. Exemption from taxes, assessments and certain fees; payments in lieu of taxes

1. It is hereby determined that the  creation  of  the  authority  and the carrying out of its corporate purposes is in
  all respects for the benefit of the people of the state and is a  public
  purpose,   and   the   authority  shall  be  regarded  as  performing  a
  governmental function in the exercise of the powers conferred upon it by
  this title and shall not be  required  to  pay  any  taxes,  special  ad
  valorem levies or special assessments upon any real property owned by it
  or  any  filing,  recording  or  transfer  fees  or taxes in relation to
  instruments filed, recorded or transferred  by  it  or  on  its  behalf;
  provided,  however,  that  any  real  property  owned or acquired by the
  authority outside of the district shall be  exempt  from  real  property
  taxes,  ad valorem levies or special assessments only pursuant to and to
  the extent provided by an agreement  with  the  governing  body  of  the
  municipality in which such real property is located.
    2.  An  authority  may  pay,  or  may  enter  into agreements with any
  municipality to pay, a sum or sums, annually or otherwise or to  provide
  other  considerations to such municipality with respect to real property
  owned by the authority located within such municipality and constituting
  a part of a water or sewerage system.
    3. Any bonds issued pursuant to this title together  with  the  income
  therefrom  shall  be exempt from taxation except for transfer and estate
  taxes. The revenues, moneys and all other property and activities of the
  authority shall be exempt  from  all  taxes  and  governmental  fees  or
  charges,  whether  imposed  by  the state or any municipality, including
  without limitation real estate taxes, franchise taxes,  sales  taxes  or
  other  excise  taxes.  Notwithstanding  the  foregoing provision of this
  subdivision, any real  property  owned  or  acquired  by  the  authority
  outside  the  district  shall  be  subject  to  subdivision  one of this
  section. The state hereby covenants with the  purchasers  and  with  all
  subsequent  holders  and  transferees  of  bonds issued by the authority
  pursuant to this title,  in  consideration  of  the  acceptance  of  and
  payment  for  the bonds, that the bonds of the authority issued pursuant
  to this title and  the  income  therefrom  shall  be  exempt  from  such
  taxation as aforestated herein, and that all revenues, moneys, and other
  property  pledged to secure the payment of such bonds shall at all times
  be free from such taxes as aforestated herein.
    * NB There are 2 § 1199-oo's