New York Laws
Title 1-B - North Country Power Authority
1021-L - Exemption of the Authority From Taxation.

§ 1021-l. Exemption of the authority from taxation. 1. It is hereby
found and declared that the operation of the authority is primarily for
the benefit of the people of the participating municipalities, counties
and the state, for the improvement of their health, welfare and
prosperity, and is a public purpose, and the authority shall be regarded
as performing an essential governmental function in carrying out the
provisions of this title.

2. The authority shall be required to pay no taxes nor assessments
upon any of the property acquired or controlled by it or upon its
activities in the operation and maintenance thereof or upon income
derived therefrom, provided that nothing herein shall prevent the
authority from entering into agreements to make payments in lieu of
taxes.

3. The authority shall make payments in lieu of taxes to
municipalities and school districts equal to the taxes and assessments
which would have been received from year to year by such jurisdiction.

4. The authority shall also make payments in lieu of taxes for those
taxes which would otherwise be imposed upon a utility corporation
pursuant to: (a) section one hundred eighty-six-a and former section one
hundred eighty-six of the tax law as such sections were in effect on
December thirty-first, nineteen hundred ninety-nine; (b) any taxes
imposed by a city within the authority's service area pursuant to the
authorization granted by section twenty-b of the general city law; and
(c) any taxes imposed by a village within the authority's service area
pursuant to authorization granted by section 5-530 of the village law.

5. Notwithstanding the exemption in subdivision two of this section,
the authority shall also be subject to the assessments imposed pursuant
to section eighteen-a of the public service law.

6. The securities issued by the authority, and the income therefrom
shall, at all times, be free from taxation, except for estate and gift
taxes.

7. Nothing in this article shall relieve the authority from its
obligations to register for sales tax purposes, collect state or local
sales and compensating use taxes imposed by or pursuant to the authority
of articles twenty-eight and twenty-nine of the tax law, and otherwise
comply with those articles on its sale of property or services.