(a) All property of the Authority is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes, franchise fees, and special assessments of whatever nature of the State or any subdivision. All bonds or notes issued by the Authority or a municipality under this chapter are issued by a body corporate and public of this State and for an essential public and governmental purpose, and those bonds and notes and the interest thereon and the income therefrom and all activities of the Authority and fees, charges, funds, revenues, incomes, and other monies of the Authority, whether or not pledged or available to pay or secure the payment of those bonds or notes, or interest thereon, are exempt from all taxation, franchise fees, or special assessments of whatever kind except for transfer, inheritance, and estate taxes. This section shall not prevent a municipality from assessing and collecting from the Authority any excavation or construction fees otherwise charged by the municipality.

(b) The Authority is not required to make or file any reports, statements, or informational returns required of any other bodies corporate except as provided in this chapter.

(c) Buildings and structures of the Authority exempted from property taxation under this section shall be considered "State-owned property" for the purposes of the State payment in lieu of taxes (PILOT) provisions of 32 V.S.A. chapter 123, subchapter 4. (Added 2007, No. 79, § 1, eff. June 9, 2007.)