New Jersey Statutes Title 58. Waters and Water Supply 58 § 11B-17

All property of the trust is declared to be public property devoted to an essential public and governmental function and purpose and the revenues, income and other moneys received or to be received by the trust shall be exempt from all taxes of the State or any political subdivision thereof.  All bonds, notes and other obligations of the trust issued pursuant to P.L.1985, c. 334 (C.58:11B-1 et seq.),P.L.1997, c. 224 (C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c. 56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4) are declared to be issued by a body corporate and politic of the State and for an essential public and governmental purpose and those bonds, notes and other obligations, and interest thereon and the income therefrom and from the sale, exchange or other transfer thereof shall at all times be exempt from taxation, except for transfer inheritance and estate taxes.