§ 1120-N — Exemption from taxes, assessments and certain fees

New York § 1120-N

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 6-B: Clifton Park Water Authority
• Art. 5: Public Utility Authorities

Text

§ 1120-n. Exemption from taxes, assessments and certain fees. 1. It is\nhereby determined that the creation of the authority and the carrying\nout of its corporate purposes is in all respects for the benefit of the\npeople of the town and the state and is a public purpose and the\nauthority shall be regarded as performing a governmental function in the\nexercise of the powers conferred upon it by this title and shall not be\nrequired to pay any taxes, special ad valorem levies or special\nassessments upon any property owned by it or under its jurisdiction,\ncontrol or supervision or upon its activities, or any filing, recording\nor transfer fees or taxes in relation to instruments filed, recorded or\ntransferred by it or on its behalf; provided, however, that any real\nproperty owned or under the jurisdiction, supervision or control of the\nauthority outside of the district shall be exempt from real property\ntaxes, ad valorem levies or special assessments only pursuant to and to\nthe extent provided by an agreement with the governing body of the\nmunicipality in which said real property is located. The construction,\nuse, occupation or possession of any property owned by the authority or\nthe town, including improvements thereon, by any person or public\ncorporation under a lease, lease and sublease or any other agreement\nshall not operate to abrogate or limit the foregoing exemption,\nnotwithstanding that the lessee, user, occupant or person in possession\nshall claim ownership for federal income tax purposes.\n 2. Any bonds issued pursuant to this title, together with the income\ntherefrom, shall be exempt from taxation. For purposes of this\nsubdivision, the phrase "exempt from taxation" means exempt from direct\ntaxation in conformity with established judicial interpretation of the\ntax exempt status of the obligations of the state and its agencies,\nentities, authorities and political subdivisions and thus, the meaning\nof such phrase is in conformity with the legislative intent expressed by\nsection twenty-two of chapter one hundred sixty-six of the laws of\nnineteen hundred ninety-one regarding the tax exempt status of\nobligations of the state and its agencies. The revenues, moneys and\nother properties and activities of the authority shall be exempt from\ntaxes and governmental fees or charges, whether imposed by the state or\nany municipality, including real estate taxes, franchise taxes, sales\ntaxes or other excise taxes except as otherwise provided in subdivision\none of this section with respect to real property located outside the\ndistrict.\n 3. The state hereby covenants with the purchaser and with all\nsubsequent holders and transferees of bonds issued by the authority\npursuant to this title that the interest thereon shall be exempt from\ntaxation. The state further covenants with the holders of such bonds\nthat all revenues, moneys, and other property pledged to secure the\npayment of such bonds shall at all times be free from such taxation.\nFor purposes of this subdivision, the phrase "exempt from taxation"\nmeans exempt from direct taxation in conformity with established\njudicial interpretation of the tax exempt status of the obligations of\nthe state and its agencies, entities, authorities and political\nsubdivisions and thus, the meaning of such phrase is in conformity with\nthe legislative intent expressed by section twenty-two of chapter one\nhundred sixty-six of the laws of nineteen hundred ninety-one regarding\nthe tax exempt status of obligations of the state and its agencies.\n