221.425. Regional jail district solely liable for its debts--income exempt from state taxes. - Missouri Statutes

Regional jail district solely liable for its debts--income exemptfrom state taxes.

221.425. 1. All bonds, notes and other obligations of the districtare payable solely out of the contributions made by the member counties orfrom revenues and receipts derived from the operation of the district'sfacilities.

2. All obligations of the district constitute negotiable instruments.

3. Obligations of the district shall not be deemed a debt, liabilityor pledge of the faith and credit of the state, of any member county, or ofany other political subdivision of the state. The issuance of districtobligations shall not, directly, indirectly or contingently, obligate thestate, a member county or any other political subdivision to levy any formof taxation or to make any appropriation for their payment.

4. The district is declared to be performing a public function onbehalf of the member counties and to be a public instrumentality of suchcounties. Accordingly:

(1) The income of the district and all properties owned by thedistrict are exempt from all taxation in the state of Missouri;

(2) For the purposes of section 409.402, RSMo, obligations of thedistrict are deemed to be securities issued by a public instrumentality orpolitical subdivision of the state of Missouri; and

(3) Interest on obligations of the district is exempt from incometaxation by the state of Missouri.

(L. 1997 S.B. 89 merged with S.B. 218)