N.Y. Public Authorities Law § 2589: Tax exemption and tax contract by the state

§ 2589. 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 are in all respects for the benefit of the people

of the state of New York and are public purposes. Accordingly, the

authority shall be regarded as performing an essential governmental

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

The property of the authority, its income and its operations shall be

exempt from taxation, assessments, special assessments and ad valorem

levies. 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 this title, or upon or with respect to

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

income received by the authority.

2. Any bonds issued pursuant to this title, their transfer and the

income therefrom shall, at all times, be exempt from taxation.

3. 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 and

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 pay or to secure the payment of such bonds

shall at all times be exempt from taxation.

4. Notwithstanding any provision of this section, the authority shall

be required to pay water and sewer fees or charges imposed by any public

corporation.

5. The foregoing shall not, however, limit the county from receiving

rentals, fees or other consideration pursuant to agreements negotiated

with the authority.