N.Y. PBA Law § 3640

§ 3640. Tax exemption and tax contract by the state. 1. It is hereby\ndetermined that the creation of the corporation and the carrying out of\nits corporate purposes are in all respects for the benefit of the people\nof the state of New York and are public purposes. Accordingly, the\ncorporation shall be regarded as performing an essential governmental\nfunction in the exercise of the powers conferred upon it by this title,\nand the corporation shall not be required to pay any fees, taxes,\nspecial ad valorem levies, or assessments of any kind, except as\nprovided pursuant to any public health law, whether state or local,\nincluding but not limited to fees, taxes, special ad valorem levies, or\nassessments on real property, franchise taxes, sales taxes, or other\ntaxes, upon or with respect to any property owned by it or under its\njurisdiction, control, or supervision, or upon the uses thereof, or upon\nor with respect to its activities or operations in furtherance of the\npowers conferred upon it by this title, or upon or with respect to any\nfares, tolls, rentals, rates, charges, fees, revenues, or other income\nreceived by the corporation; provided, however, that any real property\nowned or acquired by the corporation outside of the county shall be\nexempt from real property taxes, ad valorem levies, or special\nassessments only pursuant to and to the extent provided by an agreement\nwith the governing body of the municipality in which such real property\nis located; and provided, further, that subsidiaries of the corporation\nare not included within the foregoing exemption.\n 2. Any bonds issued pursuant to this title, together with the income\nfrom such bonds, shall at all times be exempt from taxation.\n 3. The state hereby covenants with the purchasers and with all\nsubsequent holders and transferees of bonds issued by the corporation\npursuant to this title, in consideration of the acceptance of and\npayment for the bonds, that the bonds of the corporation issued pursuant\nto this title and the income from such bonds, and all revenues, monies,\nand other property pledged to pay or to secure the payment of such bonds\nshall at all times be free from taxation.\n 4. The corporation may pay, or may enter into agreements with the\ncounty or any municipality to pay, a sum or sums annually or otherwise\nor to provide other considerations with respect to real property owned\nby the corporation located within the county or such municipality.\n