N.Y. Public Authorities Law § 1862: Exemption from taxation of bonds and notes

§ 1862. Exemption from taxation of bonds and notes. The state

covenants with the purchasers and with all subsequent holders and

transferees of bonds and notes, in consideration of the acceptance of

and payment for the bonds and notes, that the bonds and notes and the

income therefrom, and all moneys, funds and revenues pledged to pay or

secure the payment of such bonds and notes shall at all times be free

from taxation, except for estate and gift taxes and taxes on transfers.