N.Y. PBA Law § 1196-L

§ 1196-l. Exemption from taxes, assessments and certain fees; payments\nin lieu of taxes. 1. It is hereby determined that the creation of an\nauthority and the carrying out of its corporate purposes is in all\nrespects for the benefit of the people of the state and is a public\npurpose, and an authority shall be regarded as performing a governmental\nfunction in the exercise of the powers conferred upon it by this title\nand shall not be required to pay any taxes, special ad valorem levies or\nspecial assessments upon any real property owned by it or any filing,\nrecording or transfer fees or taxes in relation to instruments filed,\nrecorded or transferred by it or on its behalf; provided, however, that\nany real property owned or acquired by the authority outside of a\nsponsoring municipality shall be exempt from real property taxes, ad\nvalorem levies or special assessments only pursuant to and to the extent\nprovided by an agreement with the governing body of the municipality in\nwhich such real property is located.\n 2. An authority may pay, or may enter into agreements with any\nmunicipality to pay, a sum or sums, annually or otherwise or to provide\nother considerations to such municipality with respect to real property\nowned by the authority located within such municipality and constituting\na part of a water or sewerage system.\n 3. Any bonds issued pursuant to this title together with the income\ntherefrom shall be exempt from taxation except for transfer and estate\ntaxes. The revenues, moneys and all other property and activities of an\nauthority shall be exempt from all taxes and governmental fees or\ncharges, whether imposed by the state or any municipality, including\nwithout limitation real estate taxes, franchise taxes, sales taxes or\nother excise taxes. Notwithstanding the foregoing provision of this\nsubdivision, any real property owned or acquired by an authority outside\na sponsoring municipality shall be subject to subdivision one of this\nsection. The state hereby covenants with the purchasers and with all\nsubsequent holders and transferees of bonds issued by an authority\npursuant to this title, in consideration of the acceptance of and\npayment for the bonds, that the bonds of the authority issued pursuant\nto this title and the income therefrom shall be free from such taxation,\nas aforestated herein, and that all revenues, moneys, and other property\npledged to secure the payment of such bonds shall at all times be free\nfrom such taxes, as aforestated herein.\n