§ 2799-ll. 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, including, but not limited
to, 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.