N.Y. Public Authorities Law § 2667: Tax exemption and tax contract by the state

§ 2667. 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 is 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.

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

from taxation, assessments, special assessments and special 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. Bonds issued pursuant to this title together with 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, monies, and

other property pledged to pay or to secure the payment of such bonds

shall at all times be free from taxation.

4. The authority may pay, or may enter into agreements with the county

or any municipality to pay, a sum or sums annually or otherwise or to

provide other considerations with respect to the real property owned by

the authority located within the county or such municipality.

5. Notwithstanding subdivision four of this section, any project

authorized by paragraphs (d), (m) and (n) of subdivision eight of

section twenty-six hundred fifty-five of this title except government

office space, building or facilities shall be exempt from real property

taxation, calculated not to exceed the following: ten years of full

exemption followed by one year of exemption from eighty percent of such

taxation, followed by one year of exemption from sixty percent of such

taxation, followed by one year of exemption from forty percent of such

taxation, followed by one year of exemption from twenty percent of such

taxation.