N.Y. Public Authorities Law § 1012: Exemption from taxation

§ 1012. Exemption from taxation. It is hereby found and declared that

the projects authorized by this title are for the aid and improvement of

commerce and navigation and that such aid and improvement of commerce

and navigation and the development, sale and distribution of power is

primarily for the benefit of the people of the state of New York, for

the improvement of their health and welfare and material prosperity, and

is a public purpose, and the authority shall be regarded as performing a

governmental function in undertaking such projects and in carrying out

the provisions of this title, and shall be required to pay no taxes or

assessments upon any of the property acquired by it for such projects or

upon its activities in the operation and maintenance thereof, provided

that nothing herein shall prevent the authority from entering into

agreements to make payments in lieu of taxes with respect to property

acquired for any project where such payments are based solely on the

value of real property without regard to any improvement thereof by the

authority and where no bonds to pay any costs of such project were

issued prior to January first, nineteen hundred seventy-two.

The securities and other obligations issued by the authority, their

transfer and the income therefrom shall, at all times, be free from

taxation within this state. It is furthermore declared that the object

and purpose of this title is that such projects shall be in all respects

self-supporting.