§ 406 — Municipal corporations

§ 406. Municipal corporations. 1. Real property owned by a municipal\ncorporation within its corporate limits held for a public use shall be\nexempt from taxation and exempt from special ad valorem levies and\nspecial assessments to the extent provided in section four hundred\nninety of this chapter.\n 2. Real property owned by a municipal corporation not within its\ncorporate limits while used for the provision of fire protection\nservices provided that some fire protection services are available to\nthe municipal corporation in which the real property is located, for a\npublic park, public aviation field, highway or for flood control and\nsoil conservation purposes as provided in section two hundred\ntwenty-three of the county law shall be exempt from taxation by any\nmunicipal corporation in which it is located, provided the governing\nboard thereof shall so agree in writing.\n 3. Real property owned by a municipal corporation not within its\ncorporate limits while used as a sewage disposal plant or system,\nincluding necessary connections and appurtenances, or real property\nowned by a municipal corporation having a population of less than one\nhundred thousand or a population of two hundred twenty-five thousand or\nmore but less than three hundred thousand used as a water plant, pumping\nstation, water treatment plant, water shed or reservoir, including\nnecessary connections and appurtenances shall be wholly or partially\nexempt from taxation and wholly or partially exempt from special ad\nvalorem levies and special assessments, by any municipal corporation in\nwhich located, provided the governing board thereof shall so agree in\nwriting.\n 4. The aqueducts which are a part of the water supply system of the\ncity of New York shall be entitled to the exemption provided by law.\n 5. Real property owned by a municipal corporation acquired by tax\ndeed, by referee's deed in tax foreclosure, pursuant to article eleven\nof this chapter or pursuant to a deed made in lieu of tax foreclosure\nshall be deemed to be held by it for a public use for a period of three\nyears from the date of the deed and during such period shall be exempt\nfrom taxation and special ad valorem levies, but shall be liable for\ntaxes for school purposes and special assessments. Any such property\nfrom which a municipal corporation is receiving revenue on the date of\ntaxable status, however, shall not be so exempt.\n 6. County reforested lands shall be entitled to the exemption provided\nin the county law.\n 7. Real property owned by a municipal corporation on January first,\nnineteen hundred sixty-eight outside the boundaries of the municipal\ncorporation shall be exempt from taxation where: (a) such property is\nused for public aviation purposes; and (b) is served by three or more\nmajor passenger air carriers; and (c) payments in lieu of real property\ntaxes are paid in accordance herewith. The owning municipal corporation\nshall make payments in lieu of real property taxes to the county, town,\nschool districts and villages in which it is located in an amount which\nwill not be less than the amount of taxes finally determined to be\npayable pursuant to the law in effect on the effective date of this act\nor any agreement in effect on the effective date of this act made\npursuant to law. The owning municipal corporation is hereby authorized\nand empowered to make payments in lieu of real property taxes in excess\nof the amounts required by this subdivision.\n 8. Real property owned by a municipal corporation not within its\ncorporate limits while used for a municipal electrical generation and\ndistribution system, including necessary connections and appurtenances,\nshall be wholly or partially exempt from taxation and wholly or\npartially exempt from special ad valorem levies and special assessments,\nby any municipal corporation in which located, provided the governing\nboard thereof shall so agree in writing.\n