N.Y. Public Authorities Law § 1316: Exemption from taxation

§ 1316. 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 and used for transportation purposes, 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 uses 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 all bonds, notes and obligations 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, notes and obligations 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.