The property of housing authorities is exempt from all taxes and special assessments of the state or any county, city, town, or metropolitan government.  In lieu of such taxes or special assessments, a housing authority must agree to make payments to the county, city, town, or metropolitan government for services, improvements or facilities furnished by the county, city, town, or metropolitan government for the benefit of a housing project owned by the housing authority. In no event may these payments exceed the estimated cost to the county, city, town, or metropolitan government of the services, improvements or facilities furnished.¹

The bonds or notes issued by a housing authority, together with the interest thereon and the income therefrom, are exempt from all taxes.²