Section 1048-K. Tax exemption of the water board property and activities

1. It is hereby determined that the creation of a water  board  and  the
  carrying  out  of  its  corporate  purposes  is  in all respects for the
  benefit of the city and is a public purpose and the water board shall be
  regarded as performing a governmental function in the  exercise  of  the
  powers  conferred upon it by this title and shall not be required to pay
  any taxes, special ad valorem levies or  special  assessments  upon  any
  real  property  owned by it or any filing, recording or transfer fees or
  taxes in relation to instruments filed, recorded or transferred by it or
  on its behalf. The water board shall be deemed a  public  authority  for
  the  purposes  of  section  four hundred twelve of the real property tax
  law.
    2. Notwithstanding the provisions of subdivisions one and four of this
  section, any real property  of  the  water  board  located  outside  the
  boundaries  of  the  city,  shall  be  exempt from the payment of taxes,
  special ad valorem levies and special assessments only  if  and  to  the
  extent  that  such  real property would have been exempt if owned by the
  city.
    3. Notwithstanding any provision in this section to the contrary,  the
  water  board may pay, or may enter into agreements with any municipality
  to pay, a sum or sums,  annually  or  otherwise,  or  to  provide  other
  considerations  to  such  municipality, with respect to real property of
  the water board located within such municipality and provided  that  any
  such  payment  or  agreement  to pay shall be subject to approval by the
  authority.
    4. The water board shall not be required to pay  any  taxes  or  other
  governmental  fees  or  charges,  whether  imposed  by  the state or any
  municipality, including without limitation franchise taxes, sales  taxes
  or  other  excise taxes, or any other tax or charge upon its property or
  activities or upon any of its revenues or other income.