N.Y. Public Authorities Law § 1318: Agreements relating to payment in lieu of taxes

§ 1318. Agreements relating to payment in lieu of taxes. To the end

that municipal corporations, counties and school districts may not

suffer undue loss of taxes or assessments:

If the authority acquires property for non-transportation purposes

(e.g. for future transportation purposes but not to be so used

immediately) the authority except as hereinafter provided, shall pay to

the participating county and/or city, town or school district where the

property is located, annually, in lieu of taxes, a sum equal to the sum

last paid as taxes upon the property prior to the time of its

acquisition by the authority. Should such property be subsequently

developed and improved but still remain unused for transportation

purposes, it shall during such period of disuse for transportation be

subject to assessment, at the prevailing method of determining

assessments, by the county and/or city and/or school district and the

authority shall, based on such assessment, annually, in lieu of taxes,

pay to the county and/or city and/or school district an amount fixed by

it.

If the authority acquires property for transportation purposes but

subsequently uses such property for non-transportation purposes, then

the authority shall be required, except as hereinafter provided, to pay

annually in lieu of taxes to the participating county and/or city and/or

school district wherein such property is located, an amount equal to the

sum which the said county and/or city and/or school district would

ordinarily be imposed as taxes, pursuant to the prevailing method of

determining assessments.

Properties acquired by the authority for transportation and used as

such, shall not be subject to the payment of any taxes except that the

authority shall pay such property special benefit assessments on the

property if it is located in an existing special benefit district.

The authority may, in its discretion, enter into agreements to pay

annual sums in lieu of taxes in respect of any real property which is

owned by the authority and exempt from taxation pursuant to section

thirteen hundred sixteen of this title to the participating county and

for city, town or school district in which the property is located,

provided, however, that the amount so paid for any year upon such

property shall not exceed the sum last paid as taxes on such property to

such county, city, town or school district prior to the time of its

acquisition by the agency.