2006 New York Code - Exemption From Taxation.

 
    §  1012. Exemption from taxation. It is hereby found and declared that
  the projects authorized by this title are for the aid and improvement of
  commerce and navigation and that such aid and  improvement  of  commerce
  and  navigation  and  the development, sale and distribution of power is
  primarily for the benefit of the people of the state of  New  York,  for
  the improvement of their health and welfare and material prosperity, and
  is a public purpose, and the authority shall be regarded as performing a
  governmental  function  in undertaking such projects and in carrying out
  the provisions of this title, and shall be required to pay no  taxes  or
  assessments upon any of the property acquired by it for such projects or
  upon  its  activities in the operation and maintenance thereof, provided
  that nothing herein shall  prevent  the  authority  from  entering  into
  agreements  to  make  payments in lieu of taxes with respect to property
  acquired for any project where such payments are  based  solely  on  the
  value  of real property without regard to any improvement thereof by the
  authority and where no bonds to pay  any  costs  of  such  project  were
  issued prior to January first, nineteen hundred seventy-two.
    The  securities  and  other obligations issued by the authority, their
  transfer and the income therefrom shall, at  all  times,  be  free  from
  taxation  within  this state. It is furthermore declared that the object
  and purpose of this title is that such projects shall be in all respects
  self-supporting.