Rev. Rul. 56-410

The Oswego Port Authority was created as a body corporate and politic by an act of the Legislature of the State of New York, Title 16 of the Public Authorities Law, effective July 1, 1955. Pursuant to the powers conferred upon it by the Act, the Authority is authorized and empowered, among other things, to lease, erect, construct, make equip and maintain port facilities in the Oswego Port District and, for any such purpose, to acquire in the name of the Authority by purchase, gift or condemnation, real property, including easements therein, lands under water and riparian rights. The Authority is also empowered to operate and maintain all port facilities owned by it. Held, the Oswego Port Authority is a political subdivision of a State within the meaning of section 4292 of the Internal Revenue Code of 1954. Accordingly, the taxes imposed by sections 4251, 4261, and 4271 of the Code do not apply to payments for communications and transportation services or facilities furnished to the Authority or to payments for the transportation of property to or from the Authority.