N.Y. Public Authorities Law § 3640: Tax exemption and tax contract by the state

§ 3640. 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 are in all respects for the benefit of the people

of the state of New York and are public purposes. 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 any 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 this 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; and provided, further, that subsidiaries of the corporation

are not included within the foregoing exemption.

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

from such bonds, 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 from such bonds, 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.