Assessment against government land prohibited -- Exception

(1) (a) Except as provided in Subsection (2), a local entity may not levy an assessment against property owned by the federal government or a public agency, even if the property benefits from the improvement. (b) Notwithstanding Subsection (1)(a), a public agency may contract with a local entity: (i) for the local entity to provide an improvement to property owned by the public agency; and (ii) to pay for the improvement provided by the local entity. (c) Nothing in this section may be construed to prevent a local entity from imposing on and collecting from a public agency, or a public agency from paying, a reasonable charge for a service rendered or material supplied by the local entity to the public agency, including a charge for water, sewer, or lighting service. (2) Notwithstanding Subsection (1): (a) (i) a local entity may continue to levy and enforce an assessment against property acquired by a public agency within an assessment area if the acquisition occurred after the assessment area was designated; and (ii) property that is subject to an assessment lien at the time it is acquired by a public agency continues to be subject to the lien and to enforcement of the lien if the assessment and interest on the assessment are not paid when due; or (b) a local entity may levy and enforce an assessment against property owned by the federal government or a public agency if the federal government or public agency, as applicable, consents in writing to the local entity levying the assessment.