Section 2667. Tax exemption and tax contract by the state

1. It is hereby
  determined that the creation of the authority and the  carrying  out  of
  its  corporate purposes is 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.
  The property of the authority, its income and operations shall be exempt
  from  taxation,  assessments, special assessments and special ad valorem
  levies; 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.  Bonds  issued  pursuant  to  this  title  together with the income
  therefrom 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 authority
  pursuant to this title,  in  consideration  of  the  acceptance  of  and
  payment  for  the bonds, that the bonds of the authority issued pursuant
  to this title and the income therefrom 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 authority 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 the real property owned by
  the authority located within the county or such municipality.
    5. Notwithstanding subdivision  four  of  this  section,  any  project
  authorized  by  paragraphs  (d),  (m)  and  (n)  of subdivision eight of
  section twenty-six hundred fifty-five of this  title  except  government
  office  space, building or facilities shall be exempt from real property
  taxation, calculated not to exceed the  following:  ten  years  of  full
  exemption  followed by one year of exemption from eighty percent of such
  taxation, followed by one year of exemption from sixty percent  of  such
  taxation,  followed  by one year of exemption from forty percent of such
  taxation, followed by one year of exemption from twenty percent of  such
  taxation.