N.Y. Public Authorities Law § 2799-ll: Tax exemption and tax contract by the state

§ 2799-ll. Tax exemption and tax contract by the state. 1. It is

hereby determined that the creation of the authority and the carrying

out of its corporate purposes is in all respects for the benefit of the

people of the state of New York and is a public purpose. Accordingly,

the authority shall be regarded as performing an essential governmental

function in the exercise of the powers conferred upon it by this title,

and the authority shall not be required to pay any fees, taxes, special

ad valorem levies or assessments of any kind, including, but not limited

to, franchise taxes, sales taxes or other taxes, upon or with respect to

any property owned by it or under its jurisdiction, control or

supervision, or upon the uses thereof, or upon or with respect to its

activities or operations in furtherance of the powers conferred upon it

by this title, or upon or with respect to any fares, tolls, rentals,

rates, charges, fees, revenues or other income received by the

authority.

2. Any bonds issued pursuant to this title together with the income

therefrom shall at all times be exempt from taxation.

3. The state hereby covenants with the purchasers and with all

subsequent holders and transferees of bonds issued by the authority

pursuant to this title, 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 revenues, monies, and

other property pledged to pay or to secure the payment of such bonds

shall at all times be free from taxation.