N.Y. Laws » CHAPTER Public Authorities / ARTICLE Public Utility Authorities / TITLE Metropolitan Commuter Transportation Authority
New York Consolidated Laws

N.Y. Public Authorities Law § 1275 (2026)

Exemption from taxation

✓ text as retrieved May 2026 (this copy records no edition or section history)
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§ 1275. Exemption from taxation. It is hereby found, determined and
declared that the creation of the authority and the carrying out of its
purposes is in all respects for the benefit of the people of the state
of New York and for the improvement of their health, welfare and
prosperity and is a public purpose, and that the authority will be
performing an essential governmental function in the exercise of the
powers conferred upon it by this title. Without limiting the generality
of the following provisions of this section, property owned by the
authority, property leased by the authority and used for transportation
purposes, and property used for transportation purposes by or for the
benefit of the authority exclusively pursuant to the provisions of a
joint service arrangement or of a joint facilities agreement or trackage
rights agreement shall all be exempt from taxation and special ad
valorem levies. The authority shall be required to pay no fees, taxes or
assessments, whether state or local, including but not limited to fees,
taxes or assessments on real estate, franchise taxes, sales taxes or
other excise taxes, upon any of its property, or upon the use thereof,
or upon it activities in the operation and maintenance of its facilities
or on any fares, tolls, rentals, rates, charges or other fees, revenues
or other income received by the authority and the bonds of the authority
and the income therefrom shall at all times be exempt from taxation,
except for gift and estate taxes and taxes on transfers.  This section
shall constitute a covenant and agreement with the holders of all bonds
issued by the authority. The terms "taxation" and "special ad valorem
levy" shall have the same meanings as defined in section one hundred two
of the real property tax law and the term "transportation purposes"
shall have the same meaning as used in titles two-a and two-b of article
four of such law.
Notes of Decisions
Cited in 7 cases, 1986–2017 · leading case: Matter of AJM Capital II, LLC v. Long Is. R.R. Co., 131 A.D.3d 474 (N.Y. App. Div. 2d Dep't 2015).
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Matter of AJM Capital II, LLC v. Long Is. R.R. Co., 131 A.D.3d 474 (N.Y. App. Div. 2d Dep't 2015). “In a letter dated August 24, 2012, the LIRR responded that, as a subsidiary of the Metropolitan Transportation Authority, it was exempt from taxes and assessments on its real property by virtue of Public Authorities Law § 1275. In February 2013, the petitioner commenced this…”
Pinelawn Cemetery v. Metro. Transp. Auth., 155 A.D.3d 1069 (N.Y. App. Div. 2d Dep't 2017). · cites it 6× “Prior to 2007, the Town of Babylon considered the subject property to be exempt from real property taxes pursuant to Public Authorities Law § 1275. However, in 2007, the Town placed the subject property on the taxable section of the Town’s assessment roll beginning with tax…”
New Jersey Transit Rail Operations v. Cnty. of Rockland, 187 A.D.2d 430 (N.Y. App. Div. 2d Dep't 1992). “*431 The petitioner New Jersey Transit Rail Operations (hereinafter NJTRO) commenced this proceeding to obtain relief from the respondents’ imposition of tax assessments upon certain parcels of property owned by NJTRO and allegedly operated by it for passenger rail service…”
Metro. Transp. Auth. v. Assessor of City of Mount Vernon, 30 Misc. 3d 470 (N.Y. Sup. Ct. 2010). · cites it 5× “On August 4, 2009, MTA requested that the City grant an exemption for the subject premises pursuant to Public Authorities Law § 1275. In September of that year, the City Comptroller responded simply that OTR, the owner of the premises, was not a tax-exempt entity.”
CBS Outdoor, Inc. v. City of New York, 50 Misc. 3d 283 (N.Y. Sup. Ct. 2015). “The court in Matter of Penny Port, LLC noted that the Appellate Division, First Department had previously ruled that the portions of Grand Central Terminal being used as food stores, drugstores, and other commercial enterprises were incidental to Grand Central Terminal’s use for…”
New Jersey Transit Rail Operations v. Cnty. of Rockland, 164 A.D.2d 912 (N.Y. App. Div. 2d Dep't 1990). “The petitioner New Jersey Transit Rail Operations (hereinafter NJTRO) commenced this proceeding to obtain relief from the respondents’ imposition of tax assessments upon certain parcels of property owned by NJTRO and allegedly operated by it for passenger rail service pursuant…”
Metro. Transp. Auth. v. Imholz, 121 A.D.2d 724 (N.Y. App. Div. 2d Dep't 1986). “The exemption from local assessments in Public Authorities Law § 1275 extends to special benefit assessments (see, Town of Cheektowaga v Niagara Frontier Transp.”
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