§ 1299-o. Exemption from taxation. It is hereby found, determined and
declared that the creation of the authority and the carrying out of its
purposes is in all respects for the benefit of the people of the state
of New York and for the improvement of their health, welfare and
prosperity and is a public purpose, and that the authority will be
performing an essential governmental function in the exercise of the
powers conferred upon it by this title. Without limiting the generality
of the following provisions of this section, property owned by the
authority, property leased by the authority and used for transportation
purposes, and property used for transportation purposes by or for the
benefit of the authority exclusively pursuant to the provisions of a
joint service arrangement or of a joint facilities agreement or trackage
rights agreement shall all be exempt from taxation and special ad
valorem levies. The authority shall be required to pay no fees, taxes or
assessments, whether state or local, except special benefit assessments
if said property is located in a special benefit district, including but
not limited to fees, taxes or assessments on real estate, franchise
taxes, sales taxes or other excise taxes, upon any of its property, or
upon the use thereof, or upon its activities in the operation and
maintenance of its facilities or on any fares, tolls, rentals, rates,
charges or other fees, revenues or other income received by the
authority and the bonds of the authority and the income therefrom shall
at all times be exempt from taxation, except for gift and estate taxes
and taxes on transfers. This section shall constitute a covenant and
agreement with the holders of all bonds issued by the authority. The
terms "taxation" and "special ad valorem levy" shall have the same
meanings as defined in section one hundred two of the real property tax
law and the term "transportation purposes" shall have the same meaning
as used in titles two-a and two-b of article four of such law.