Who is exempt from the special tax and what happens when government property is leased or sold

Properties of entities of the Federal, State, or County governments shall be exempt from the special tax, except as otherwise provided by Subsection (b) of this Section. No other properties or entities within a district shall be exempt from the special tax, unless expressly exempted in the ordinance of formation.If a Federal, State, or County entity owning property, including property held in trust for any beneficiary, grants a leasehold or other possessory interest in the property to a nonexempt person or entity, the special tax shall, notwithstanding Subsection (a) of this Section, be levied on the leasehold or possessory interest and shall be payable by the owner of the leasehold or possessory interest.When entering into a lease or other written contract creating a possessory interest for a nonexempt person or entity, the Federal, State, or County entity shall include in the contract a statement that the property interest shall be subject to special taxation pursuant to this Chapter. Failure to comply with the requirement shall not, however, invalidate the contract or affect the special tax or the obligation of the nonexempt person or entity to pay the special tax.If property not otherwise exempt from a special tax levied pursuant to this Chapter is acquired by a Federal, State or County government through a negotiated transaction, or by gift or devise, the special tax shall, notwithstanding Subsection (a) of this Section, continue to be levied on the property acquired and shall be enforceable against the public entity that acquired property unless such special tax is prepaid and permanently satisfied, whether prior to or subsequent to the acquisition of the property, in accordance with the applicable ordinance of formation. However, even if the ordinance of formation that authorized creation of the district did not specify conditions under which the obligation to pay a special tax may be prepaid and permanently satisfied, the Council may specify conditions under which the Federal, State or County government that acquires the property may prepay and satisfy the obligation to pay the special tax; provided that the Council finds and determines that the prepayment arrangement will fully protect the interests of the owners of the district's debt.