N.Y. Public Authorities Law § 2049-o: Exemption from taxes, assessments and certain fees

§ 2049-o. 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 town 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 owned by it

or under its jurisdiction, control or supervision or upon its activities

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 the town, 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 as well as the property of the authority shall be exempt from

taxes, except for transfer and estate taxes. 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, that 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 transfer

and estate taxes.