New York Consolidated Laws, Public Authorities Law - PBA § 2713. Exemption from taxation of bonds

It is hereby determined that the creation of the authority is in all respects for the benefit of the people of the state and for the improvement of their health, safety, welfare, comfort and security, and that said purposes are public purposes and that the authority will be performing an essential governmental function in the exercise of the powers conferred upon it by this title. The state covenants with the purchasers and all subsequent holders and transferees of bonds issued by the authority, 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 its fees, charges, gifts, grants, revenues, receipts, and other moneys received or to be received, pledged to pay or secure the payment of such bonds shall at all times be free from taxation except for estate or gift taxes and taxes on transfers.