N.Y. PBA Law § 1299-R

§ 1299-r. Agreements relating to payments in lieu of taxes. To the end\nthat municipal corporations, counties, cities, towns, villages and\nschool districts may not suffer undue loss of taxes or assessments:\n If the authority owns or acquires property and all or any portion of\nsuch property is subsequently developed, improved or used for\nnon-transportation purposes, it shall during such period of disuse for\ntransportation purposes be subject to assessment, at the prevailing\nmethod of determining assessments based upon the current assessed value\nof all or the relevant portion of such property by the appropriate\nassessing unit and the authority shall, based on such assessment,\nannually, in lieu of taxes, pay such amount to the municipal corporation\nand/or school district.\n The authority may, in its discretion, enter into agreements to pay\nannual sums in lieu of taxes in respect of any real property which is\nowned by the authority and exempt from taxation pursuant to section\ntwelve hundred ninety-nine-o of this article to the participating\nmunicipal corporation or school district in which the property is\nlocated, provided however, that the amount so paid for any year upon\nsuch property shall not exceed the sum last paid as taxes on such\nproperty to such municipal corporation or school district prior to the\ntime of its acquisition by the agency.\n Vacant properties, properties acquired by the authority for\nnon-transportation purposes but intended to be used for future\ntransportation purposes and properties acquired by the authority for\ntransportation purposes and used as such, shall not be subject to the\npayment of any taxes or any payments in lieu thereof except that the\nauthority shall pay such property special benefit assessments on the\nproperty if it is located in an existing special benefit district.\n