N.Y. Public Authorities Law § 2713: Exemption from taxation of bonds

§ 2713. Exemption from taxation of bonds. It is hereby determined that

the creation of the authority is in all respects for the benefit of the

people of the state and for the improvement of their health, safety,

welfare, comfort and security, and that said purposes are public

purposes and that the authority will be performing an essential

governmental function in the exercise of the powers conferred upon it by

this title. The state covenants with the purchasers and all subsequent

holders and transferees of bonds issued by the authority, in

consideration of the acceptance of and payment for the bonds, that the

bonds of the authority, issued pursuant to this title and the income

therefrom and all its fees, charges, gifts, grants, revenues, receipts,

and other moneys received or to be received, pledged to pay or secure

the payment of such bonds shall at all times be free from taxation

except for estate or gift taxes and taxes on transfers.