N.Y. Public Authorities Law § 1149-m: Exemption from taxes, assessments and certain fees; payments in lieu of taxes

§ 1149-m. Exemption from taxes, assessments and certain fees; payments

in lieu of taxes. 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 county 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 real property owned by it

or any filing, recording or transfer fees or taxes in relation to

instruments filed, recorded or transferred by it or on its behalf.

2. The authority may pay, or may enter into agreements with any

municipality not located within the county to pay, a sum or sums

annually or otherwise or to provide other considerations to such

municipality with respect to real property owned by the authority

located within such municipality and constituting a part of its water or

sewerage system.

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

therefrom shall be exempt from taxation except for transfer and estate

taxes. The revenues, moneys and all other property and all activities of

the authority shall be exempt from all taxes and governmental fees or

charges, whether imposed by the state or any municipality, including

without limitation real estate taxes, franchise taxes, sales taxes or

other excise taxes.

4. The state hereby covenants with the purchasers and with all

subsequent holders and transferees of bonds issued by the authority

pursuant to this title, in consideration of the acceptance of and

payment for the bonds, that the bonds of the authority issued pursuant

to this title and the income therefrom shall be exempt from taxation as

aforestated in subdivision three of this section, and that all revenues,

moneys, and other property pledged to secure the payment of such bonds

shall at all times be free from taxation as aforestated in such

subdivision.