N.Y. PBA Law § 2050-NN

§ 2050-nn. Exemption from taxes, assessments and certain fees. 1. It\nis hereby 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 towns and the state and is a public purpose and the\nauthority shall be regarded as performing a governmental function in the\nexercise of the powers conferred upon it by this title and shall not be\nrequired to pay any taxes or assessments upon any property owned by it\nor under its jurisdiction, control or supervision or upon its\nactivities, income and operations, or any filing, recording or transfer\nfees or taxes in relation to instruments filed, recorded or transferred\nby it or on its behalf provided, however, that the authority shall\nannually pay a sum in lieu of taxes to each of the municipalities in\nwhich any real property owned by or under its jurisdiction, control or\nsupervision of the authority are located in an amount equal to the taxes\nand assessments which would have been levied upon such real property in\nan unimproved state had such real property been owned by a person whose\nreal property is subject to taxation. The construction, use, occupation\nor possession of any property owned by the authority or the towns,\nincluding improvements thereon, by any person or public corporation\nunder a lease, lease and sublease or any other agreement shall not\noperate to abrogate or limit the foregoing exemption, notwithstanding\nthat the lessee, user, occupant or person in possession shall claim\nownership for federal income tax purposes. Mortgages made or financed,\ndirectly or indirectly, by the authority shall be exempt from the\nmortgage recording taxes imposed by article eleven of the tax law.\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 transfer, and estate and gift taxes. The state hereby\ncovenants with the purchasers and with all subsequent holders and\ntransferees of bonds issued by the authority pursuant to this title, in\nconsideration of the acceptance of any payment for the bonds, that the\nbonds of the authority issued pursuant to this title and the income\ntherefrom and all revenues, moneys, and other property pledged to secure\nthe payment of such bonds shall at all times be free from taxation,\nexcept for transfer, and estate and gift taxes.\n