N.Y. Public Authorities Law § 566: Exemptions from taxation

§ 566. Exemptions from taxation. It is hereby found, determined and

declared 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, for the improvement of their health, welfare and

prosperity, and, in the case of some of the said purposes, for the

promotion of their traffic, and is a public purpose, and that, in the

case of those purposes which consist of vehicular bridges, vehicular

tunnels and approaches thereto, the project is an essential part of the

public highway system, and that the authority will be performing an

essential governmental function in the exercise of the powers conferred

upon it by this title, and the state of New York covenants with the

holders of the bonds that the authority shall be required to pay no

taxes or assessments upon any of the property acquired by it or under

its jurisdiction, control, possession or supervision or upon its

activities in the operation and maintenance of the project or any tolls,

revenues or other income received by the authority and that the bonds of

the authority and the income therefrom shall at all times be exempt from

taxation, except for transfer and estate taxes. This section shall

constitute a covenant and agreement with the holders of all bonds issued

prior to January first, nineteen hundred thirty-nine.