N.Y. PBA Law § 2041-M

§ 2041-m. Exemption from taxes, assessments and certain fees. 1. It is\nhereby determined that the creation of the authority and the carrying\nout of its corporate purposes is in all respects for the benefit of the\npeople of the participating counties and the state and is a public\npurpose and the 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 or assessments upon any\nproperty acquired or owned by it or under its jurisdiction, control or\nsupervision or upon its activities, income and operations, or any\nfiling, recording or transfer fees or taxes in relation to instruments\nfiled, recorded or transferred by it or on its behalf. The construction,\nuse, occupation or possession of any property owned by the authority or\nany participating county, including improvements thereon, by any person\nor public corporation under a lease, lease and sublease or any other\nagreement shall not operate to abrogate or limit the foregoing\nexemption, notwithstanding that the lessee, user, occupant or person in\npossession shall claim ownership for federal income tax purposes.\nMortgages made or financed, directly or indirectly, by the authority\nshall be exempt from the mortgage recording taxes imposed by article\neleven of the tax law. The authority shall be deemed a public authority\nfor the purposes of section four hundred twelve of the real property tax\nlaw.\n 2. Any bonds issued pursuant to this title together with the income\ntherefrom as well as the property of the authority shall be exempt from\ntaxes, except for estate or gift taxes on such bonds and taxes on\ntransfers. 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 any\npayment for the bonds of the authority issued pursuant to this title and\nthe income therefrom and all revenues, moneys, and other property\npledged to secure the payment of such bonds shall at all times be free\nfrom taxation, except for estate or gift taxes on such bonds and taxes\non transfers.\n