N.Y. Public Authorities Law § 3315: Tax exemption and tax contract by the state

§ 3315. Tax exemption and tax contract by the state. 1. It is hereby

determined that the creation of the corporation 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

corporation shall be regarded as performing an essential governmental

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

and the corporation shall not be required to pay any fees, taxes,

special ad valorem levies or assessments of any kind, except as provided

pursuant to the public health law, 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 the title, or upon or with respect to any fares, tolls, rentals,

rates, charges, fees, revenues or other income received by the

corporation. Provided, however, that any real property owned or

acquired by the corporation outside of the county shall be exempt from

real property taxes, ad valorem levies or special assessments only

pursuant to and to the extent provided by an agreement with the

governing body of the municipality in which such real property is

located. Provided, further, subsidiaries of the corporation are not

included within the foregoing exemption.

2. Any 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 corporation

pursuant to this title, in consideration of the acceptance of and

payment for the bonds, that the bonds of the corporation 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 corporation 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 real property owned

by the corporation located within the county or such municipality.