§237-27.6  Solid waste processing, disposal,and electric generating facility; certain amounts exempt.  (a)  Anyprovision of the law to the contrary notwithstanding, there shall be exemptedfrom, and excluded from the measure of, the taxes imposed by this chapter allof the amounts enumerated in subsection (b) arising from a transactioninvolving a sale and leaseback of a solid waste processing, disposal, andelectric generating facility entered into by a political subdivision of theState under section 46-19.1 where the facility is owned or under constructionby the subdivision before May 10, 1988.

(b)  Amounts are exempted or excluded fromtaxation under this chapter only to the extent that they:

(1)  Are received by an operator of a facility underan operating contract with a political subdivision, where the:

(A)  Operator, or its successor, entered intoan operating contract prior to May 10, 1988;

(B)  Operator enters into a lease of thefacility from the owner at a time that coincides with the time the owner andthe political subdivision entering into a sale and leaseback transaction; and

(C)  Amounts are used by the operator to makerental payments to the owner;

(2)  Are received as rental payments by the owner ofthe facility from the operator of the facility;

(3)  Do not exceed the payments made by the owner ofthe facility under the sale and leaseback transaction to the politicalsubdivision; and

(4)  In no case exceed debt service costs incurred bythe political subdivision for the construction of the facility.

(c)  For the purposes of this section:

"Debt service costs" means paymentsof principal and interest on general obligation bonds issued at any time by apolitical subdivision for the construction of the facility.

"Sale and leaseback" means atransaction in which a facility is sold by a political subdivision to a privateentity for cash, under an installment sale, a financing lease, or similararrangement, or any combination thereof, where the political subdivision hasthe right to repurchase the facility at a later date, and where the facility isleased to an operator of the facility.

"Solid waste processing, disposal, andelectric generating facility" or "facility" means a facility forthe processing and disposal of solid waste or the generation of electricenergy, or both, the construction of which has been financed pursuant tosection 47-4 and constitutes an undertaking as defined in section 49-1.

"Operator" means a private entity whoenters into an agreement or other arrangement with the owner of a solid wasteprocessing, disposal, and electric generating facility for the purpose ofoperating such facility for a political subdivision of the State.

"Owner" means any person whopurchases a solid waste processing, disposal, and electric generating facilityunder section 46-19.1. [L 1988, c 57, §2; am L 1990, c 34, §6]

 

Revision Note

 

  "May 10, 1988" substituted for "the effectivedate of this section".