N.Y. PBA Law § 2796

§ 2796. 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 bond holders, the authority may, with\nthe approval of the county, but is not required to, enter into\nagreements with any municipality of the state to pay annual sums in lieu\nof taxes to any such municipality in respect of any real property which\nis owned by the authority is located in such municipality and is used\nfor public aviation purposes or pollution control purposes. For the\npurposes of this section, such public aviation purposes shall include\nwithout limitation air terminal facilities, parking facilities, fuel\nfacilities, maintenance facilities, and facilities for the loading,\nunloading, holding, interchange or transfer of passengers, freight,\nbaggage or cargo.\n 3. (a) In the event that any real property owned by the authority is\nused by the authority or a lessee thereof for purposes other than public\naviation purposes, the authority, or lessee thereof, as the case may be,\nshall, with the approval of the county, enter into agreements with any\nmunicipality of the state to pay annual sums in lieu of taxes in respect\nof such real property locate in such municipality. For the purposes of\nthis section, such purposes other than public aviation purposes shall\ninclude without limitation, hotels, motels, restaurants and retail\nstores and concessions not located within any air terminal building,\noffice buildings to the extent not used by the authority or any other\npublic corporation for its own corporate purposes, and such other\nbuildings and improvements as determined by the authority to be not\nexclusively for public aviation purposes.\n (b) The authority shall determine (i) the amount of such annual\npayments in lieu of taxes, (ii) whether the use of such property is for\npurposes other than public aviation purposes, and (iii) the extent to\nwhich such property is used for purposes other than public aviation\npurposes. In making such determinations the authority shall take into\nconsideration the recommendations, if any, of the county.\n