Section 2766. Exemption from taxes, assessments and certain fees

1. The
  authority shall not be required to  pay  any  fees,  taxes,  special  ad
  valorem levies or assessments, whether state or local, including but not
  limited to fees, taxes, special ad valorem levies or assessments on real
  property,  franchise  taxes, sales taxes or other excise taxes, upon any
  property owned by it or under its jurisdiction, control or  supervision,
  or  upon  the  uses thereof, or upon its activities in the operation and
  maintenance of its facilities  or  any  fares,  tolls,  rentals,  rates,
  charges,  fees,  revenues  or  other  income  received by the authority.
  Notwithstanding the previous sentence, the authority shall  be  required
  to  pay  water  and  pure  water  fees  or charges imposed by any public
  corporation. The authority shall at all times be exempt from any filing,
  mortgage recording or transfer fees or taxes in relation to  instruments
  filed, recorded or transferred by it or on its behalf. The construction,
  use,  occupation or possession of any property owned by the authority or
  the county, including improvements thereon,  by  any  person  or  public
  corporation  under  a  lease,  lease and sublease or any other agreement
  shall  not  operate  to  abrogate  or  limit  the  foregoing  exemption,
  notwithstanding  that the lessee, user, occupant or person in possession
  shall claim ownership for federal income tax purposes.
    2. Any bonds issued pursuant to this title together  with  the  income
  therefrom as well as the property of the authority shall at all times be
  exempt  from  taxes,  except  for  transfer  and estate taxes. 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 and all revenues, moneys, and other property pledged to secure
  the  payment  of  such  bonds  shall at all times be free from taxation,
  except for transfer and estate taxes.