N.Y. Public Authorities Law § 2766: Exemption from taxes, assessments and certain fees

§ 2766. Exemption from taxes, assessments and certain fees. 1. The

authority shall not be required to pay any fees, taxes, special ad

valorem levies or assessments, 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 excise taxes, upon any

property owned by it or under its jurisdiction, control or supervision,

or upon the uses thereof, or upon its activities in the operation and

maintenance of its facilities or any fares, tolls, rentals, rates,

charges, fees, revenues or other income received by the authority.

Notwithstanding the previous sentence, the authority shall be required

to pay water and pure water fees or charges imposed by any public

corporation. The authority shall at all times be exempt from any filing,

mortgage 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.

2. Any bonds issued pursuant to this title together with the income

therefrom as well as the property of the authority shall at all times be

exempt from taxes, except for transfer and estate 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 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 secure

the payment of such bonds shall at all times be free from taxation,

except for transfer and estate taxes.