N.Y. Public Authorities Law § 1199-oo*2: Exemption from taxes, assessments and certain fees; payments in lieu of taxes

* § 1199-oo. 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 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;

provided, however, that any real property owned or acquired by 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 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 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. Notwithstanding the foregoing provision of this

subdivision, any real property owned or acquired by the authority

outside the district 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 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 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.

* NB There are 2 § 1199-oo's