Section 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.