N.Y. PBA Law § 1199-NNN

§ 1199-nnn. Exemption from taxes, assessments and certain fees;\npayments in lieu of taxes. 1. It is hereby determined that the creation\nof the authority and the carrying out of its corporate purposes is in\nall respects for the benefit of the people of the county and the state\nand is a public purpose, and the authority shall be regarded as\nperforming a governmental function in the exercise of the powers\nconferred upon it by this title and shall not be required to pay any\ntaxes, special ad valorem levies or special assessments upon any real\nproperty owned by it or any filing, recording or transfer fees or taxes\nin relation to instruments filed, recorded or transferred by it or on\nits behalf provided, however, that any real property owned or acquired\nby the authority outside of the district shall be exempt from real\nproperty taxes, ad valorem levies or special assessments only pursuant\nto and to the extent provided by an agreement with the governing body of\nthe municipality in which such real property is located.\n 2. The authority may pay, or may enter into agreements with any\nmunicipality not located within the county to pay, a sum or sums\nannually or otherwise or to provide other considerations to such\nmunicipality with respect to real property owned by the authority\nlocated within such municipality and constituting a part of its water\nsystem.\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 all activities of\nthe authority 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.\n 4. The state hereby covenants with the purchasers and with all\nsubsequent holders and transferees of bonds issued by the 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 exempt from such\ntaxation as aforestated in subdivision three of this section, and that\nall revenues, moneys, and other property pledged to secure the payment\nof such bonds shall at all times be free from such taxation as\naforestated in such subdivision.\n