Section 1296. Exemption from taxation; payments in lieu of taxes

It is
  hereby  found,  determined  and  declared  that  the  creation  of   the
  corporation  and the carrying out of its purposes is in all respects for
  the benefit of the  people  of  the  state  of  New  York  and  for  the
  improvement  of  their  health,  welfare  and prosperity and is a public
  purpose, and that  the  corporation  will  be  performing  an  essential
  governmental function in the exercise of the powers conferred upon it by
  this  title.  1.  Real property owned by the corporation shall be exempt
  from taxation, special ad valorem levies and special assessments.
    2. Real  property  owned  by  the  corporation  (1)  used  for  or  in
  connection  with  any  project or projects, (2) which is located outside
  the boundaries of the contracting municipality  or  municipalities,  and
  (3) which was subject to taxation, special ad valorem levies, or special
  assessments  on  the  latest assessment roll finally completed, verified
  and filed preceding the date of acquisition thereof by  the  corporation
  shall be subject to payments in lieu of taxes, special ad valorem levies
  and  special  assessments  by  the  corporation  in  accordance with the
  provisions of this section.
    3. The in lieu payments shall be computed and determined  annually  by
  the state board of real property services as follows:
    (a)  determine  the  full  value of such property as of the applicable
  taxable status date for the assessment role for which in  lieu  payments
  are being computed;
    (b)  determine  the  full  value  of  such property as of such taxable
  status date attributable to improvements constructed or reconstructed by
  the corporation;
    (c) deduct item (b) from item (a);
    (d) multiply the full value determined in item (c)  by  the  ratio  of
  assessed  value  to  full value of other property on the same assessment
  roll;
    (e) the result determined in item (d) shall be the  approved  assessed
  valuation  for  such  property. The determinations of the full value and
  the ratio of assessed value to full value shall  be  determined  by  the
  state board.
    4. Application for an approved assessed valuation shall be made by the
  assessor  of  the  assessing unit within which such property is located.
  Application shall be made as soon as practicable  after  acquisition  of
  such  property  by  the  corporation. The application shall be made on a
  form approved by the state board of real  property  services  and  shall
  contain such information as such board shall require.
    5.  Upon  approval  of  such  application by the state board the state
  board shall certify such approved assessed valuation  to  the  assessing
  unit  and  to  the corporation. The approved assessed valuation shall be
  entered by the assessor or other local official on the  assessment  roll
  with the notation that such property is exempt from taxation, special ad
  valorem  levies  and  special  assessments but qualifies for payments in
  lieu of  taxes,  special  ad  valorem  levies  and  special  assessments
  pursuant  to  this  section.  The  approved  assessed valuation shall be
  treated for all purposes as taxable assessed valuation and taxable  full
  valuation  on the assessment roll for which it is made. Amounts shall be
  extended against such approved assessed valuation in the same manner and
  at the same  time  as  taxes,  special  ad  valorem  levies  or  special
  assessments  are  extended  against  taxable  property.  The appropriate
  collecting officer shall transmit a statement of the amounts computed as
  payable as in lieu of taxes,  special  ad  valorem  levies  and  special
  assessments to the corporation. The provisions of any general or special
  law  relating  to  the  collection and enforcement of taxes shall not be
  applicable to property subject to the provisions of this section.

    6.  The  terms  "taxation,"  "special  ad  valorem  levies,"  "special
  assessments"  and  "assessing  unit" shall have the same meanings as set
  forth in section one hundred two of the real property tax law.
    7.  Notwithstanding  any provision to the contrary in this section, in
  view of the costs of governmental  services  being  provided  by  public
  corporations, as defined in the general corporation law, the corporation
  may pay or may enter into agreements with any public corporation to pay,
  a sum or sums, annually or otherwise, or to provide other considerations
  to  such  public  corporation with respect to real property owned by the
  corporation within the boundaries of such public  corporation  and  used
  for any project or projects.
    8.  The corporation shall be required to pay no fees or taxes, whether
  state or local, including but not limited  to  fees  or  taxes  on  real
  estate,  franchise taxes, sales taxes or other excise taxes, upon any of
  its property, real or personal, or upon the use  thereof,  or  upon  its
  activities  in the operation and maintenance of its facilities or on any
  rentals, rates, charges or other fees, revenues or other income received
  by the corporation and that the bonds and notes of the  corporation  and
  the  income therefrom shall at all times be exempt from taxation, except
  for gift and estate taxes and taxes on transfers. Nothing  contained  in
  this  subdivision shall affect the obligation imposed by this section on
  the corporation to make in lieu payments.
    9. This section shall constitute a covenant  and  agreement  with  the
  holders of all bonds and notes issued by the corporation.