N.Y. Public Authorities Law § 1196-l: Exemption from taxes, assessments and certain fees; payments in lieu of taxes

§ 1196-l. Exemption from taxes, assessments and certain fees; payments

in lieu of taxes. 1. It is hereby determined that the creation of an

authority and the carrying out of its corporate purposes is in all

respects for the benefit of the people of the state and is a public

purpose, and an 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; provided, however, that

any real property owned or acquired by the authority outside of a

sponsoring municipality 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 such real property is located.

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

municipality 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 a 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 activities of an

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. Notwithstanding the foregoing provision of this

subdivision, any real property owned or acquired by an authority outside

a sponsoring municipality shall be subject to subdivision one of this

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

subsequent holders and transferees of bonds issued by an 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 free from such taxation,

as aforestated herein, and that all revenues, moneys, and other property

pledged to secure the payment of such bonds shall at all times be free

from such taxes, as aforestated herein.