N.Y. Public Authorities Law § 1949-b: Tax exemption and tax contract by the state

§ 1949-b. Tax exemption and tax contract by the state. 1. It is hereby

determined that the creation of the authority and the carrying out of

its corporate purposes is in all respects for the benefit of the people

of the state of New York and is a public purpose. Accordingly, the

authority shall be regarded as performing an essential governmental

function in the exercise of the powers conferred upon it by this title,

and the authority shall not be required to pay any fees, taxes, special

ad valorem levies or assessments of any kind, 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

taxes, upon or with respect to any property owned by it or under its

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

or with respect to its activities or operations in furtherance of the

powers conferred upon it by the title, or upon or with respect to any

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

received by the authority. Notwithstanding the previous sentence, the

authority shall be required to pay water and pure water fees or charges

as may be negotiated by any public corporation. The construction, use,

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

county, 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 shall at all times be exempt from taxation.

3. The state hereby convenants 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 pay or to secure the payment of such bonds

shall at all times be free from taxation.