N.Y. Public Authorities Law § 2642-h: Exemption from taxation

§ 2642-h. Exemption from taxation. 1. It is hereby determined that the

creation of the authority and the carrying out of its purposes under

this title are in all respects for the benefit of the people of the

state of New York and is a public purpose. Accordingly, the authority

shall be regarded as performing an essential governmental function in

the exercise of the powers conferred upon it by this title, and 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. Notwithstanding subdivision one of this section, the authority or

any lessees of the authority shall be required to pay water and sewer

fees, water and sewer assessments or water and sewer special ad valorem

levies.

3. The authority may pay, or may enter into agreements with any

municipality, including school districts, to pay, a sum or sums annually

or otherwise or to provide other considerations with respect to real

property owned by the authority located within such municipality.