1. Except as otherwise provided in subsection 2, bonds and other securities issued pursuant to NRS 388A.550 to 388A.695, inclusive, their transfer and the income produced by the bonds and other securities is and must forever be and remain free and exempt from taxation by this State or any political subdivision of this State.
2. The provisions of subsection 1 do not apply to the tax on the transfers of taxable estates imposed by chapter 375A of NRS or the tax on generation-skipping transfers imposed by chapter 375B of NRS.