Section 1115-J. 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.