N.Y. Public Authorities Law § 2041-m: Exemption from taxes, assessments and certain fees

§ 2041-m. Exemption from taxes, assessments and certain fees. 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 participating counties and the state and is a public

purpose and the authority shall be regarded as performing a governmental

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

and shall not be required to pay any taxes or assessments upon any

property acquired or owned by it or under its jurisdiction, control or

supervision or upon its activities, income and operations, or any

filing, recording or transfer fees or taxes in relation to instruments

filed, recorded or transferred by it or on its behalf. The construction,

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

any participating 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.

Mortgages made or financed, directly or indirectly, by the authority

shall be exempt from the mortgage recording taxes imposed by article

eleven of the tax law. The authority shall be deemed a public authority

for the purposes of section four hundred twelve of the real property tax

law.

2. Any bonds issued pursuant to this title together with the income

therefrom as well as the property of the authority shall be exempt from

taxes, except for estate or gift taxes on such bonds and taxes on

transfers. The state hereby covenants 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 any

payment for the bonds of the authority issued pursuant to this title and

the income therefrom and all revenues, moneys, and other property

pledged to secure the payment of such bonds shall at all times be free

from taxation, except for estate or gift taxes on such bonds and taxes

on transfers.