N.Y. Public Authorities Law § 2050-nn: Exemption from taxes, assessments and certain fees

§ 2050-nn. 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 towns 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, 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 provided, however, that the authority shall

annually pay a sum in lieu of taxes to each of the municipalities in

which any real property owned by or under its jurisdiction, control or

supervision of the authority are located in an amount equal to the taxes

and assessments which would have been levied upon such real property in

an unimproved state had such real property been owned by a person whose

real property is subject to taxation. The construction, use, occupation

or possession of any property owned by the authority or the towns,

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.

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 and gift 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 and gift taxes.