2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 1 - Public Property › 406 - Municipal Corporations.

§  406.  Municipal corporations. 1. Real property owned by a municipal
  corporation within its corporate limits held for a public use  shall  be
  exempt  from  taxation  and  exempt  from  special ad valorem levies and
  special assessments to the  extent  provided  in  section  four  hundred
  ninety of this chapter.
2.  Real  property  owned  by  a  municipal corporation not within its
  corporate limits  while  used  for  the  provision  of  fire  protection
  services  provided  that  some fire protection services are available to
  the municipal corporation in which the real property is located,  for  a
  public  park,  public  aviation  field, highway or for flood control and
  soil  conservation  purposes  as  provided  in   section   two   hundred
  twenty-three  of  the  county  law  shall be exempt from taxation by any
  municipal corporation in which it is  located,  provided  the  governing
  board thereof shall so agree in writing.
3.  Real  property  owned  by  a  municipal corporation not within its
  corporate limits while used  as  a  sewage  disposal  plant  or  system,
  including  necessary  connections  and  appurtenances,  or real property
  owned by a municipal corporation having a population of  less  than  one
  hundred  thousand or a population of two hundred twenty-five thousand or
  more but less than three hundred thousand used as a water plant, pumping
  station, water treatment  plant,  water  shed  or  reservoir,  including
  necessary  connections  and  appurtenances  shall be wholly or partially
  exempt from taxation and wholly or  partially  exempt  from  special  ad
  valorem  levies and special assessments, by any municipal corporation in
  which located, provided the governing board thereof shall  so  agree  in
  writing.
4.  The  aqueducts  which are a part of the water supply system of the
  city of New York shall be entitled to the exemption provided by law.
5. Real property owned by a  municipal  corporation  acquired  by  tax
  deed,  by  referee's deed in tax foreclosure, pursuant to article eleven
  of this chapter or pursuant to a deed made in lieu  of  tax  foreclosure
  shall  be deemed to be held by it for a public use for a period of three
  years from the date of the deed and during such period shall  be  exempt
  from  taxation  and  special  ad valorem levies, but shall be liable for
  taxes for school purposes and special  assessments.  Any  such  property
  from  which  a municipal corporation is receiving revenue on the date of
  taxable status, however, shall not be so exempt.
6. County reforested lands shall be entitled to the exemption provided
  in the county law.
7. Real property owned by a municipal corporation  on  January  first,
  nineteen  hundred  sixty-eight  outside  the boundaries of the municipal
  corporation shall be exempt from taxation where: (a)  such  property  is
  used  for  public  aviation purposes; and (b) is served by three or more
  major passenger air carriers; and (c) payments in lieu of real  property
  taxes  are paid in accordance herewith. The owning municipal corporation
  shall make payments in lieu of real property taxes to the county,  town,
  school  districts and villages in which it is located in an amount which
  will not be less than the amount  of  taxes  finally  determined  to  be
  payable  pursuant to the law in effect on the effective date of this act
  or any agreement in effect on  the  effective  date  of  this  act  made
  pursuant  to  law. The owning municipal corporation is hereby authorized
  and empowered to make payments in lieu of real property taxes in  excess
  of the amounts required by this subdivision.
8.  Real  property  owned  by  a  municipal corporation not within its
  corporate limits while used for a municipal  electrical  generation  and
  distribution  system, including necessary connections and appurtenances,
  shall be  wholly  or  partially  exempt  from  taxation  and  wholly  or
  partially exempt from special ad valorem levies and special assessments,

  by  any  municipal  corporation in which located, provided the governing
  board thereof shall so agree in writing.