N.Y. Public Authorities Law § 3245: Exemption from taxation

§ 3245. Exemption from taxation. 1. It is hereby determined that the

creation of the corporation and the carrying out of its corporate

purpose is in all respects a public and governmental purpose for the

benefit of the people of the state and for the improvement of their

health, safety, welfare, comfort and security, and that said purposes

are public purposes and that the corporation will be performing an

essential governmental function in the exercise of the powers conferred

upon it by this title.

2. The property of the corporation and its income and operations shall

be exempt from taxation.

3. The bonds and notes of the corporation issued pursuant to this

title and the income therefrom and all its fees, charges, gifts, grants,

revenues, receipts, and other monies received or to be received, pledged

to pay or secure the payment of such bonds or notes shall at all times

be free from taxation, except for estate and gift taxes on transfers.

4. In the case of any bonds or notes of the corporation, interest on

which is intended to be exempt from federal income tax, the corporation

shall prescribe restrictions on the use of the proceeds thereof and

related matters as are necessary to assure such exemption, and the

recipients of such proceeds shall be bound thereby to the extent such

restrictions shall be made applicable to them.