NY Pub Auth L § 1174-N (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 7-A - Water Authority of Southeastern Nassau County 1174-N - Exemption From Taxes, Assessments and Certain Fees; Payments in Lieu of Taxes.

§ 1174-n. Exemption from taxes, assessments and certain fees; payments   in  lieu  of  taxes. 1. It is hereby determined that the creation of the   authority and the carrying out of  its  corporate  purposes  is  in  all   respects  for  the  benefit  of  the people of the state and is a public   purpose,  and  the  authority  shall  be  regarded   as   performing   a   governmental function in the exercise of the powers conferred upon it by   this  title  and  shall  not  be  required  to pay any taxes, special ad   valorem levies or special assessments upon any real property owned by it   or any filing, recording or  transfer  fees  or  taxes  in  relation  to   instruments filed, recorded or transferred by it or on its behalf.2.  The  authority  may  pay,  or  may  enter into agreements with any   municipality to pay, a sum or sums annually or otherwise or  to  provide   other  considerations to such municipality with respect to real property   owned by the authority located within such municipality and constituting   a part of its water system.3. Any bonds issued pursuant to this title together  with  the  income   therefrom  shall  be  exempt from taxation. The revenues, moneys and all   other property and all activities of the authority shall be exempt  from   all taxes and governmental fees or charges, whether imposed by the state   or  any  municipality,  including  without limitation real estate taxes,   franchise taxes, sales taxes or other excise taxes. For purposes of this   subdivision, the phrase "exempt from taxation" means exempt from  direct   taxation  in  conformity with established judicial interpretation of the   tax exempt status of the obligations of  the  state  and  its  agencies,   entities,  authorities  and political subdivisions and thus, the meaning   of such phrase is in conformity with the legislative intent expressed by   section twenty-two of chapter one  hundred  sixty-six  of  the  laws  of   nineteen   hundred   ninety-one  regarding  the  tax  exempt  status  of   obligations of the state and its agencies.4. The state  hereby  covenants  with  the  purchasers  and  with  all   subsequent  holders  and  transferees  of  bonds issued by the authority   pursuant to this title that the interest thereon shall  be  exempt  from   taxation.  The  state  further  covenants with the holders of such bonds   that all revenues, moneys, and other  property  pledged  to  secure  the   payment  of  such  bonds shall at all times be free from such taxes. For   purposes of this subdivision, the phrase "exempt  from  taxation"  means   exempt  from  direct  taxation  in  conformity with established judicial   interpretation of the tax exempt status of the obligations of the  state   and  its  agencies, entities, authorities and political subdivisions and   thus, the meaning of such phrase is in conformity with  the  legislative   intent  expressed by section twenty-two of chapter one hundred sixty-six   of the laws of nineteen hundred  ninety-one  regarding  the  tax  exempt   status of obligations of the state and its agencies.5.  Notwithstanding  the above, nothing herein shall prevent the state   from assessing a tax or surcharge against the water customers  based  on   their  water  consumption,  provided,  however,  that all such taxes and   surcharges and the authority's obligation to collect and pay such  taxes   and  surcharges  shall be subordinate to the rights of holders of all of   the authority's bonds  and  notes  and  to  the  payment  of  principal,   premiums if any, and interest thereon.