N.Y. Public Authorities Law § 1296: Exemption from taxation; payments in lieu of taxes

§ 1296. Exemption from taxation; payments in lieu of taxes. It is

hereby found, determined and declared that the creation of the

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

the benefit of the people of the state of New York and for the

improvement of their health, welfare and prosperity and is a public

purpose, and that the corporation will be performing an essential

governmental function in the exercise of the powers conferred upon it by

this title. 1. Real property owned by the corporation shall be exempt

from taxation, special ad valorem levies and special assessments.

2. Real property owned by the corporation (1) used for or in

connection with any project or projects, (2) which is located outside

the boundaries of the contracting municipality or municipalities, and

(3) which was subject to taxation, special ad valorem levies, or special

assessments on the latest assessment roll finally completed, verified

and filed preceding the date of acquisition thereof by the corporation

shall be subject to payments in lieu of taxes, special ad valorem levies

and special assessments by the corporation in accordance with the

provisions of this section.

3. The in lieu payments shall be computed and determined annually by

the commissioner of taxation and finance as follows:

(a) determine the full value of such property as of the applicable

taxable status date for the assessment role for which in lieu payments

are being computed;

(b) determine the full value of such property as of such taxable

status date attributable to improvements constructed or reconstructed by

the corporation;

(c) deduct item (b) from item (a);

(d) multiply the full value determined in item (c) by the ratio of

assessed value to full value of other property on the same assessment

roll;

(e) the result determined in item (d) shall be the approved assessed

valuation for such property. The determinations of the full value and

the ratio of assessed value to full value shall be determined by the

commissioner.

4. Application for an approved assessed valuation shall be made by the

assessor of the assessing unit within which such property is located.

Application shall be made as soon as practicable after acquisition of

such property by the corporation. The application shall be made on a

form approved by the commissioner of taxation and finance and shall

contain such information as such commissioner shall require.

5. Upon approval of such application by the commissioner the

commissioner shall certify such approved assessed valuation to the

assessing unit and to the corporation. The approved assessed valuation

shall be entered by the assessor or other local official on the

assessment roll with the notation that such property is exempt from

taxation, special ad valorem levies and special assessments but

qualifies for payments in lieu of taxes, special ad valorem levies and

special assessments pursuant to this section. The approved assessed

valuation shall be treated for all purposes as taxable assessed

valuation and taxable full valuation on the assessment roll for which it

is made. Amounts shall be extended against such approved assessed

valuation in the same manner and at the same time as taxes, special ad

valorem levies or special assessments are extended against taxable

property. The appropriate collecting officer shall transmit a statement

of the amounts computed as payable as in lieu of taxes, special ad

valorem levies and special assessments to the corporation. The

provisions of any general or special law relating to the collection and

enforcement of taxes shall not be applicable to property subject to the

provisions of this section.

6. The terms "taxation," "special ad valorem levies," "special

assessments" and "assessing unit" shall have the same meanings as set

forth in section one hundred two of the real property tax law.

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

view of the costs of governmental services being provided by public

corporations, as defined in the general corporation law, the corporation

may pay or may enter into agreements with any public corporation to pay,

a sum or sums, annually or otherwise, or to provide other considerations

to such public corporation with respect to real property owned by the

corporation within the boundaries of such public corporation and used

for any project or projects.

8. The corporation shall be required to pay no fees or taxes, whether

state or local, including but not limited to fees or taxes on real

estate, franchise taxes, sales taxes or other excise taxes, upon any of

its property, real or personal, or upon the use thereof, or upon its

activities in the operation and maintenance of its facilities or on any

rentals, rates, charges or other fees, revenues or other income received

by the corporation and that the bonds and notes of the corporation and

the income therefrom shall at all times be exempt from taxation, except

for gift and estate taxes and taxes on transfers. Nothing contained in

this subdivision shall affect the obligation imposed by this section on

the corporation to make in lieu payments.

9. This section shall constitute a covenant and agreement with the

holders of all bonds and notes issued by the corporation.