HRS §39-65
Tax exemption for state projects and revenue bonds
While the State owns a project or runs a loan program, its property and income are free from state and local taxes. Revenue bonds from this program and their income are also tax-free, except for inheritance, transfer, and estate taxes. Property used as loan security is not treated as state property for this exemption.
borrowersfinancial institutionsstate agencies
The statute, as written — Undertaking, loan program, and revenue bonds exempt from taxation
So long as the State owns any undertaking or administers a loan program, the property and revenue of the undertaking or loan program shall be exempt from all state, county, and municipal taxation; provided that any interest in property provided or given as security for a loan made under a loan program shall not be or be deemed to be property of a department for purposes of this section. Revenue bonds issued pursuant to this part and the income therefrom shall be exempt from all taxation by the State or any county or other political subdivision thereof, except inheritance, transfer, and estate taxes.
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