N.Y. Public Authorities Law § 665: Tax contract by the state

§ 665. Tax contract by the state. It is hereby found, determined and

declared that 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 for the promotion of their traffic and recreation, and

that said purposes are public purposes and the project is an essential

part of the public highway, park and recreational system and the

authority will be performing an essential governmental function in the

exercise of the powers conferred by this title, and the state of New

York covenants with the purchasers and with all subsequent holders and

transferees of notes and bonds issued by the authority pursuant to this

title, in consideration of the acceptance of and payment for the notes

and bonds that the notes and bonds of the authority issued pursuant to

this title and the income therefrom, and all moneys, funds, tolls and

other revenues pledged to pay or secure the payment of such notes and

bonds, shall at all times be free from taxation except for estate taxes

and taxes on transfers by or in contemplation of death.