N.Y. PBA Law § 1012

§ 1012. Exemption from taxation. It is hereby found and declared that\nthe projects authorized by this title are for the aid and improvement of\ncommerce and navigation and that such aid and improvement of commerce\nand navigation and the development, sale and distribution of power is\nprimarily for the benefit of the people of the state of New York, for\nthe improvement of their health and welfare and material prosperity, and\nis a public purpose, and the authority shall be regarded as performing a\ngovernmental function in undertaking such projects and in carrying out\nthe provisions of this title, and shall be required to pay no taxes or\nassessments upon any of the property acquired by it for such projects or\nupon its activities in the operation and maintenance thereof, provided\nthat nothing herein shall prevent the authority from entering into\nagreements to make payments in lieu of taxes with respect to property\nacquired for any project where such payments are based solely on the\nvalue of real property without regard to any improvement thereof by the\nauthority and where no bonds to pay any costs of such project were\nissued prior to January first, nineteen hundred seventy-two.\n The securities and other obligations issued by the authority, their\ntransfer and the income therefrom shall, at all times, be free from\ntaxation within this state. It is furthermore declared that the object\nand purpose of this title is that such projects shall be in all respects\nself-supporting.\n