N.Y. Public Authorities Law § 2053-p: Exemption from taxes, assessments and certain fees

§ 2053-p. 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 county 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, special ad valorem levies or special

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 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 transfer and estate taxes. The revenues, moneys and

all other property and all transactions and activities of the authority

shall be exempt from all taxes and governmental fees or charges, whether

imposed by the state or any municipality, including without limitation

real estate taxes, franchise taxes, sales taxes or other excise 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.