Sec. 362.019.  TAXATION.  (a)  Bonds issued under this chapter, the transfer of the bonds, and income from the bonds are exempt from taxation in this state.
(b)  A system purchased or leased under this chapter is subject to ad valorem taxation payable by the person contracting with the issuer according to state law.  An item purchased or leased as part of a system is subject to all applicable state taxation.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.