§ 2041-m. Exemption from taxes, assessments and certain fees. 1. It is
hereby determined that the creation of the authority and the carrying
out of its corporate purposes is in all respects for the benefit of the
people of the participating counties and the state and is a public
purpose and the authority shall be regarded as performing a governmental
function in the exercise of the powers conferred upon it by this title
and shall not be required to pay any taxes or assessments upon any
property acquired or owned by it or under its jurisdiction, control or
supervision or upon its activities, income and operations, or any
filing, recording or transfer fees or taxes in relation to instruments
filed, recorded or transferred by it or on its behalf. The construction,
use, occupation or possession of any property owned by the authority or
any participating county, including improvements thereon, by any person
or public corporation under a lease, lease and sublease or any other
agreement shall not operate to abrogate or limit the foregoing
exemption, notwithstanding that the lessee, user, occupant or person in
possession shall claim ownership for federal income tax purposes.
Mortgages made or financed, directly or indirectly, by the authority
shall be exempt from the mortgage recording taxes imposed by article
eleven of the tax law. The authority shall be deemed a public authority
for the purposes of section four hundred twelve of the real property tax
law.

2. Any bonds issued pursuant to this title together with the income
therefrom as well as the property of the authority shall be exempt from
taxes, except for estate or gift taxes on such bonds and taxes on
transfers. The state hereby covenants with the purchasers and with all
subsequent holders and transferees of bonds issued by the authority
pursuant to this title, in consideration of the acceptance of any
payment for the bonds of the authority issued pursuant to this title and
the income therefrom and all revenues, moneys, and other property
pledged to secure the payment of such bonds shall at all times be free
from taxation, except for estate or gift taxes on such bonds and taxes
on transfers.