N.Y. Public Authorities Law § 1230-s: Exemption from taxes, assessments and certain fees

§ 1230-s. Exemption from taxes, assessments and certain fees. 1. It is

hereby determined that the creation of the authority and the water board

and the carrying out of its corporate purposes is in all respects for

the benefit of the people of the city and any municipality in the

service area and is a public purpose, and the authority and the water

board shall be regarded as performing governmental functions in the

exercise of the powers conferred upon each by this title, and the

authority and the water board shall not be required to pay any fees,

taxes, special ad valorem levies or assessments, whether state or local,

including but not limited to fees, taxes, special ad valorem levies or

assessments on real property, franchise taxes, sales taxes or other

excise taxes, upon any property owned by them or under their

jurisdiction, control or supervision, or upon the uses thereof, or upon

their activities in the operation and maintenance of its facilities or

any fares, tolls, rentals, rates, charges, fees, revenues or other

income received by the authority or the water board. The authority and

the water board shall at all times be exempt from any filing, mortgage

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

recorded or transferred by it or on its behalf. The construction, use,

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

water board, 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 as well as the property of the authority or the water board

shall at all times be exempt from taxes, except for transfer and estate

taxes. 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 and all revenues, monies, and

other property pledged to secure the payment of such bonds shall at all

times be free from taxation, except for transfer and estate taxes.

3. Notwithstanding the provisions of this section to the contrary, any

real property of the authority or water board located outside the

boundaries of the city shall be exempt from the payment of taxes,

special ad valorem levies and special assessments only if and to the

extent that such real property would have been exempt if owned by the

city.

4. Notwithstanding any provision in this section to the contrary, the

water board may pay, or may enter into agreements with the city or any

municipality to pay, a sum or sums, annually or otherwise, or to provide

other considerations to such city or municipality, with respect to real

property of the water board located within such municipality and

provided that any such payment or agreement to pay shall be subject to

approval by the authority.

5. The water board shall not be required to pay any taxes or other

governmental fees or charges, whether imposed by the state or any

municipality, including, without limitation, franchise taxes, sales

taxes or other excise taxes, or any other tax or charge upon its

property or activities or upon any of its revenues or other income.

6. Notwithstanding any other provision of this section, any payment by

the water board in lieu of tax payments described in this subdivision

shall be subordinate to any other payments required to be made to the

authority pursuant to this title, including, without limitation, the

payment of sums to the authority or to any trustee representing the

holders of any bonds issued by the authority.