N.Y. High. Law § 277
In any town in which there may be an incorporated village, which forms a separate road district, and wherein the roads and streets are maintained at the expense of such village, all property within such village shall be exempt from the levy and collection of taxes levied in the town, as provided by section two hundred sixty-seven of this chapter, for the repair and improvement of highways, including sluices, culverts and bridges having a span of less than five feet. In addition a town board in such town may exempt all property within such village from the levy and collection of taxes levied in the town for such items provided for by subdivisions three and four of section one hundred forty-one of this chapter. The assessors of such town shall indicate in a separate column the value of the real property included in such incorporated village.
N.Y. High. Law § 277