N.Y. Banking Law § 286

§ 286. Taxation and exemption of property held in fund; exemption of\nmortgages from mortgage recording tax. The fund and the income thereof\nshall be exempt from all taxation now or hereafter imposed by the state\nof New York or by any county, municipality or local authority or\nsubdivision, except that any real property constituting an asset of the\nfund shall be subject to city, county, municipal or local taxation to\nthe same extent according to its value as other similar real property is\ntaxed. Mortgages executed by the fund and/or its trustee shall be exempt\nfrom the mortgage recording taxes imposed by article eleven of the tax\nlaw.\n