N.Y. Public Authorities Law § 1135: Exemption from taxes, assessments and certain fees

* § 1135. Exemption from taxes, assessments and certain fees. 1. It is

hereby determined that the creation of the authority and the carrying

out of its corporate purposes is in all respects for the benefit of the

people of the town and the state and is a public purpose and the

authority shall be regarded as performing a governmental function in the

exercise of the powers conferred upon it by this title and shall not be

required to pay any taxes, special ad valorem levies or special

assessments upon any property owned by it or under its jurisdiction,

control or supervision or upon its activities, or any filing, recording

or transfer fees or taxes in relation to instruments filed, recorded or

transferred by it or on its behalf; provided, however, that any real

property owned or under the jurisdiction, supervision or control of the

authority outside of the district shall be exempt from real property

taxes, ad valorem levies or special assessments only pursuant to and to

the extent provided by an agreement with the governing body of the

municipality in which said real property is located. The construction,

use, occupation or possession of any property owned by the authority or

the town, including improvements thereon, by any person or public

corporation under a lease, lease and sublease or any other agreement

shall not operate to abrogate or limit the foregoing exemption,

notwithstanding that the lessee, user, occupant or person in possession

shall claim ownership for federal income tax purposes.

2. Any bonds issued pursuant to this title, together with the income

therefrom, shall be exempt from taxation. For purposes of this

subdivision, the phrase "exempt from taxation" means exempt from direct

taxation in conformity with established judicial interpretation of the

tax exempt status of the obligations of the state and its agencies,

entities, authorities and political subdivisions and thus, the meaning

of such phrase is in conformity with the legislative intent expressed by

section twenty-two of chapter one hundred sixty-six of the laws of

nineteen hundred ninety-one regarding the tax exempt status of

obligations of the state and its agencies. The revenues, moneys and

other properties and activities of the authority, shall be exempt from

taxes and governmental fees or charges, whether imposed by the state or

any municipality, including real estate taxes, franchise taxes, sales

taxes or other excise taxes except as otherwise provided in subdivision

one of this section with respect to real property located outside the

district.

3. The state hereby covenants with the purchaser and with all

subsequent holders and transferees of bonds issued by the authority

pursuant to this title that the interest thereon shall be exempt from

taxation. The state further covenants with the holders of such bonds

that all revenues, moneys, and other property pledged to secure the

payment of such bonds shall at all times be free from such taxation. For

the purposes of this subdivision, the phrase "exempt from taxation"

means exempt from direct taxation in conformity with established

judicial interpretation of the tax exempt status of the obligations of

the state and its agencies, entities, authorities and political

subdivisions and thus, the meaning of such phrase is in conformity with

the legislative intent expressed by section twenty-two of chapter one

hundred sixty-six of the laws of nineteen hundred ninety-one regarding

the tax exempt status of obligations of the state and its agencies.

* NB There are 2 § 1135's