Section 2642-H. Exemption from taxation

1. It is hereby determined that the
  creation  of  the  authority  and the carrying out of its purposes under
  this title are in all respects for the benefit  of  the  people  of  the
  state  of  New  York and is a public purpose. Accordingly, the authority
  shall be regarded as performing an essential  governmental  function  in
  the  exercise  of  the  powers  conferred upon it by this title, and the
  authority shall not be required to  pay  any  fees,  taxes,  special  ad
  valorem  levies  or  assessments  of  any  kind, 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 authority.
    2.  Notwithstanding  subdivision one of this section, the authority or
  any lessees of the authority shall be required to pay  water  and  sewer
  fees,  water and sewer assessments or water and sewer special ad valorem
  levies.
    3. The authority may pay,  or  may  enter  into  agreements  with  any
  municipality, including school districts, to pay, a sum or sums annually
  or  otherwise  or  to  provide other considerations with respect to real
  property owned by the authority located within such municipality.