§ 1232-m. Tax exemption and tax contract by the state. 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 is a public purpose. Accordingly, the
authority shall be regarded as performing an essential governmental
function in the exercise of the powers conferred upon it by this title,
and the authority shall not be required to pay any fees, taxes, special
ad valorem levies or assessments of any kind, whether state or local,
including but not limited to fees, taxes, special ad valorem levies or
assessments on real property, franchise taxes, sales taxes or other
taxes, upon or with respect to any property owned by it or under its
jurisdiction, control or supervision, or upon the uses thereof, or upon
or with respect to its activities or operations in furtherance of the
powers conferred upon it by this title, or upon or with respect to any
fares, tolls, rentals, rates, charges, fees, revenues or other income
received by the authority.

2. Any bonds issued pursuant to this title together with the income
therefrom shall at all times be exempt from taxation.

3. The state hereby covenants with the purchasers and with all
subsequent holders and transferees of bonds issued by the authority
pursuant to this title, 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 revenues, monies, and
other property pledged to pay or to secure the payment of such bonds
shall at all times be free from taxation.