A.R.S. § 40-1118: Exemption from taxation

A. The title to all property acquired under the provisions of this article shall immediately and by operation of law vest in such transit authority, in its corporate name, and is dedicated and set apart for the uses and purposes set forth in this article, and shall be exempt from all taxation, including sales, gross receipts, motor vehicle registration fees, and any use taxes, provided the authority shall not be authorized to acquire title to any property other than property used for transportation purposes or directly connected therewith.

B. Bonds issued pursuant to article 4 of this chapter, their transfer and income therefrom shall at all times be free from taxation within the state.