N.Y. Public Authorities Law § 886: Exemptions from taxation

§ 886. Exemptions from taxation. 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 it is a public purpose and the authority shall be regarded as

performing a governmental function in the exercise of the powers

conferred upon it by this title and shall be required to pay no taxes

upon any of the properties acquired by it or under its jurisdiction or

control or supervision or upon its activities.

2. Any bonds or notes issued pursuant to this title, together with the

income therefrom, as well as the property of the authority, shall be

free from taxation, except for transfer and estate taxes.