Section 1199-NN. 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 county and  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. The authority may pay,  or  may  enter  into  agreements  with  any
  municipality  not  located  within  the  county  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 its 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 all 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.
    4.  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 taxation as
  aforestated in subdivision three of this section, and that all revenues,
  moneys, and other property pledged to secure the payment of  such  bonds
  shall  at  all  times  be free from such taxation as aforestated in such
  subdivision.
    * NB There are 2 § 1199-nn's