KRS 353.772: Exemptions from taxation.

The property of the authority and its income and operation shall be exempt from all

taxation by this state or any of its political subdivisions. All bonds and notes of the

authority, the interest thereon, and their transfer shall be exempt from all taxatio n by this

state or any of its political subdivisions, except for estate, gift, and inheritance taxes,

notwithstanding that interest on bonds or notes of the authority may be or become subject

to federal income taxation.