§ 2667. Tax exemption and tax contract by the state. 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 state of New York and is a public purpose. Accordingly, the
authority shall be regarded as performing an essential governmental
function in the exercise of the powers conferred upon it by this title.
The property of the authority, its income and operations shall be exempt
from taxation, assessments, special assessments and special ad valorem
levies; the authority shall not be required to pay any fees, taxes,
special ad valorem levies or assessments of any kind, whether state or
local, including but not limited to fees, taxes, special ad valorem
levies or assessments on real property, franchise taxes, sales taxes or
other taxes, upon or with respect to any property owned by it or under
its jurisdiction, control or supervision, or upon the uses thereof, or
upon or with respect to its activities or operations in furtherance of
the powers conferred upon it by this title, or upon or with respect to
any fares, tolls, rentals, rates, charges, fees, revenues or other
income received by the authority.

2. Bonds issued pursuant to this title together with the income
therefrom shall at all times be exempt from taxation.

3. 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 and
payment for the bonds, that the bonds of the authority issued pursuant
to this title and the income therefrom and all revenues, monies, and
other property pledged to pay or to secure the payment of such bonds
shall at all times be free from taxation.

4. The authority may pay, or may enter into agreements with the county
or any municipality to pay, a sum or sums annually or otherwise or to
provide other considerations with respect to the real property owned by
the authority located within the county or such municipality.

5. Notwithstanding subdivision four of this section, any project
authorized by paragraphs (d), (m) and (n) of subdivision eight of
section twenty-six hundred fifty-five of this title except government
office space, building or facilities shall be exempt from real property
taxation, calculated not to exceed the following: ten years of full
exemption followed by one year of exemption from eighty percent of such
taxation, followed by one year of exemption from sixty percent of such
taxation, followed by one year of exemption from forty percent of such
taxation, followed by one year of exemption from twenty percent of such
taxation.