Section 490. Exemption from special ad valorem levies and special assessments

Real property exempt from taxation pursuant to subdivision
  two of section four hundred, subdivision one  of  section  four  hundred
  four, subdivision one of section four hundred six, sections four hundred
  eight,  four  hundred  ten, four hundred ten-a, four hundred ten-b, four
  hundred eighteen, four hundred twenty-a,  four  hundred  twenty-b,  four
  hundred  twenty-two, four hundred twenty-six, four hundred twenty-seven,
  four hundred twenty-eight, four hundred thirty, four hundred thirty-two,
  four  hundred  thirty-four,  four  hundred  thirty-six,   four   hundred
  thirty-eight,  four  hundred fifty, four hundred fifty-two, four hundred
  fifty-four,  four  hundred  fifty-six,  four  hundred  sixty-four,  four
  hundred   seventy-two,   four  hundred  seventy-four  and  four  hundred
  eighty-five of this chapter shall also be exempt from special ad valorem
  levies and special assessments against  real  property  located  outside
  cities  and  villages  for a special improvement or service or a special
  district improvement or  service  and  special  ad  valorem  levies  and
  special assessments imposed by a county improvement district or district
  corporation  except  (1)  those  levied  to pay for the costs, including
  interest and incidental  and  preliminary  costs,  of  the  acquisition,
  installation,   construction,   reconstruction  and  enlargement  of  or
  additions to the following improvements, including  original  equipment,
  furnishings, machinery or apparatus, and the replacements thereof: water
  supply  and  distribution  systems;  sewer  systems  (either sanitary or
  surface drainage or both, including purification, treatment or  disposal
  plants  or  buildings);  waterways  and  drainage  improvements; street,
  highway, road and  parkway  improvements  (including  sidewalks,  curbs,
  gutters,  drainage,  landscaping, grading or improving the right of way)
  and (2) special assessments payable in installments on  an  indebtedness
  including  interest  contracted  prior  to  July first, nineteen hundred
  fifty-three, pursuant to section two hundred forty-two of the  town  law
  or pursuant to any other comparable provision of law.