N.Y. Public Authorities Law § 1299-o: Exemption from taxation

§ 1299-o. Exemption from taxation. It is hereby found, determined and

declared that the creation of the authority 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 authority will be

performing an essential governmental function in the exercise of the

powers conferred upon it by this title. Without limiting the generality

of the following provisions of this section, property owned by the

authority, property leased by the authority and used for transportation

purposes, and property used for transportation purposes by or for the

benefit of the authority exclusively pursuant to the provisions of a

joint service arrangement or of a joint facilities agreement or trackage

rights agreement shall all be exempt from taxation and special ad

valorem levies. The authority shall be required to pay no fees, taxes or

assessments, whether state or local, except special benefit assessments

if said property is located in a special benefit district, including but

not limited to fees, taxes or assessments on real estate, franchise

taxes, sales taxes or other excise taxes, upon any of its property, or

upon the use thereof, or upon its activities in the operation and

maintenance of its facilities or on any fares, tolls, rentals, rates,

charges or other fees, revenues or other income received by the

authority and the bonds of the authority and the income therefrom shall

at all times be exempt from taxation, except for gift and estate taxes

and taxes on transfers. This section shall constitute a covenant and

agreement with the holders of all bonds issued by the authority. The

terms "taxation" and "special ad valorem levy" shall have the same

meanings as defined in section one hundred two of the real property tax

law and the term "transportation purposes" shall have the same meaning

as used in titles two-a and two-b of article four of such law.