Sec 36-486. Costs of operation and administration of authority; taxation

A. The state shall not be responsible for any cost incurred by the authority, including but not limited to, compensation for board members and employees, other operational and administrative expenses and the costs incurred in the issuance of bonds.

B. All costs and expenses of the authority shall be paid from bond proceeds or from lease or other revenues of the authority.

C. The authority and its income and all bonds issued by it and the income therefrom shall be exempt from all taxation in this state, except that property of the authority shall be subject to all applicable ad valorem taxes. If such property is leased, such ad valorem taxes shall be charged to the lessee as fully as if the lessee were the owner of such leased property except that no ad valorem tax shall be imposed upon any property of the authority which is leased to a person qualified for exemption from such taxes pursuant to article IX, section 2, Constitution of Arizona, and no charge for such tax shall be made to any such lessee. In addition, lease payments received by the authority from property owned by the authority shall be exempt from transaction privilege taxes imposed by the state or any of its political subdivisions.