Sales Tax Exempt Financings

The Port Authority is not required to pay certain state and local sales taxes on construction materials used to construct projects owned by the Port Authority. In order to claim ownership of a project, the Port Authority must have an ownership interest in the project to be constructed and an ownership interest in the real property on which the project is located. Transfer arrangements and leasing arrangements can be utilized to allow a private business to share the benefit of the Port Authority’s state and local sales tax exemption for its construction project.