N.Y. PBA Law § 2770

§ 2770. Agreements relating to payment in lieu of taxes. 1. In order\nto assure that municipalities may not suffer undue loss of taxes or\nassessments in the event that the authority acquires any airport from\nthe county, any person paying real property taxes or assessments as of\nthe date of the transfer of title from the county to the authority on\nany property located within any such airport shall make payments in lieu\nof taxes in an amount equal to the sums which would ordinarily be\nimposed as taxes by any municipality in which such property is located,\npursuant to the prevailing method of determining taxes and assessments.\n 2. Subject to any agreement with bondholders, the authority may, but\nis not required to, enter into agreements with any municipality of the\nstate to pay annual sums in lieu of taxes to any such municipality in\nrespect of any real property which is owned by the authority is located\nin such municipality and is used for public aviation purposes or\npollution control purposes. For the purposes of this section, such\npublic aviation purposes shall include without limitation air terminal\nfacilities, parking facilities, fuel facilities, maintenance facilities,\nand facilities for the loading, unloading, holding, interchange or\ntransfer of passengers, freight, baggage or cargo.\n 3. In the event that any real property owned by the authority is used\nor is to be used by the authority or a lessee thereof for purposes other\nthan public aviation purposes, the authority, or lessee thereof, as the\ncase may be, shall enter into agreements with any municipality of the\nstate to pay annual sums in lieu of taxes in respect of such real\nproperty located in such municipality. For the purposes of this section,\nsuch purposes other than public aviation purposes shall include without\nlimitation hotels, motels, restaurants and retail stores and concessions\nnot located within any air terminal building, office buildings to the\nextent not used by the authority or any other public corporation for its\nown corporate purposes, and such other buildings and improvements as\ndetermined by the authority to be not exclusively for public aviation\npurposes.\n The authority shall determine (i) the amount of such annual payments\nin lieu of taxes, (ii) whether the use of such property is for purposes\nother than public aviation purposes and (iii) the extent to which such\nproperty is used for purposes other than public aviation purposes. In\nmaking such determinations the authority shall take into consideration\nthe recommendations, if any, of the county.\n