KRS 175B.080: Operation and maintenance of projects constitute performance of

essential governmental functions -- Tax-free status of projects and project

revenue bonds.

The exercise of the powers granted by this chapter shall be in all respects for the benefit

of the people of the Commonwealth, for the increase of their commerce and prosperity,

and for the improvement of their health and living conditions. Because the operation and

maintenance of projects by any authority created pursuant to this chapter will const itute

the performance of essential governmental functions:

(1) An authority shall not be required to pay any taxes or assessments upon any project

or any property acquired or used by the authority under this chapter or upon the

income therefrom; and

(2) The project revenue bonds issued under this chapter, their transfer, and the income

therefrom shall at all times be free from taxation within the Commonwealth.