§ 1198-N — Exemption from taxes, assessments and certain fees; payments in lieu of taxes

New York § 1198-N

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 8-C: Water Authority of Western Nassau County
• Art. 5: Public Utility Authorities

Text

§ 1198-n. Exemption from taxes, assessments and certain fees; payments\nin lieu of taxes. 1. It is hereby determined that the creation of the\nauthority and the carrying out of its corporate purposes is in all\nrespects for the benefit of the people of the state and is a public\npurpose, and the authority shall be regarded as performing a\ngovernmental function in the exercise of the powers conferred upon it by\nthis title and shall not be required to pay any taxes, special ad\nvalorem levies or special assessments upon any real property owned by it\nor any filing, recording or transfer fees or taxes in relation to\ninstruments filed, recorded or transferred by it or on its behalf.\n 2. The authority may pay, or may enter into agreements with any\nmunicipality to pay, a sum or sums annually or otherwise or to provide\nother considerations to such municipality with respect to real property\nowned by the authority located within such municipality and constituting\na part of its water system.\n 3. Any bonds issued pursuant to this title together with the income\ntherefrom shall be exempt from taxation except for transfer and estate\ntaxes. The revenues, moneys and all other property and all activities of\nthe authority shall be exempt from all taxes and governmental fees or\ncharges, whether imposed by the state or any municipality, including\nwithout limitation real estate taxes, franchise taxes, sales taxes or\nother excise taxes.\n 4. The state hereby covenants with the purchasers and with all\nsubsequent holders and transferees of bonds issued by the authority\npursuant to this title, in consideration of the acceptance of and\npayment for the bonds, that the bonds of the authority issued pursuant\nto this title and the income therefrom shall be exempt from such\ntaxation, as aforestated in subdivision three of this section, and that\nall revenues, moneys, and other property pledged to secure the payment\nof such bonds shall at all times be free from such taxes as aforestated\nin such subdivision.\n 5. Notwithstanding the above, nothing herein shall prevent the state\nfrom assessing a tax or surcharge against the water customers based on\ntheir water consumption, provided, however, that all such taxes and\nsurcharges and the authority's obligation to collect and pay such taxes\nand surcharges shall be subordinate to the rights of holders of all of\nthe authority's bonds and notes and to the payment of principal,\npremiums if any, and interest thereon.\n