§ 1216. Exemption from taxation and fees. It is hereby found,
determined and declared that the creation of the authority and the
carrying out of its purposes is in all respects for the benefit of the
people of the state of New York and for the improvement of their health,
welfare and prosperity and is a public purpose, and that the authority
will be performing an essential governmental function in the exercise of
the powers conferred upon it by this title. Without limiting the
generality of the following provisions of this section, property owned
by the authority, and property leased by the authority and used for any
of its authorized purposes shall be exempt from taxation and special ad
valorem levies. The authority shall be required to pay no fees, taxes or
assessments, whether state or local, including but not limited to fees,
taxes or assessments on real estate, franchise taxes, sales taxes or
other excise taxes, upon any of its property, or upon the use thereof,
or upon its activities in the operation and maintenance of its
facilities or on any fares, tolls, rentals, rates, charges or other
fees, revenues or other income received by the authority and the bonds
and notes of the authority and the income therefrom shall at all times
be exempt from taxation, except for gift and estate taxes and taxes on
transfers. This section shall constitute a covenant and agreement with
the holders of all bonds and notes issued by the authority. The terms
"taxation" and "special ad valorem levy" shall have the same meanings as
defined in section one hundred two of the real property tax law.