§ 3640. Tax exemption and tax contract by the state. 1. It is hereby
determined that the creation of the corporation and the carrying out of
its corporate purposes are in all respects for the benefit of the people
of the state of New York and are public purposes. Accordingly, the
corporation shall be regarded as performing an essential governmental
function in the exercise of the powers conferred upon it by this title,
and the corporation shall not be required to pay any fees, taxes,
special ad valorem levies, or assessments of any kind, except as
provided pursuant to any public health law, 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 corporation; provided, however, that any real property
owned or acquired by the corporation outside of the county shall be
exempt from real property taxes, ad valorem levies, or special
assessments only pursuant to and to the extent provided by an agreement
with the governing body of the municipality in which such real property
is located; and provided, further, that subsidiaries of the corporation
are not included within the foregoing exemption.

2. Any bonds issued pursuant to this title, together with the income
from such bonds, 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 corporation
pursuant to this title, in consideration of the acceptance of and
payment for the bonds, that the bonds of the corporation issued pursuant
to this title and the income from such bonds, 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 corporation 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 real property owned
by the corporation located within the county or such municipality.