§ 3661. 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 are in all respects for the benefit of the people
of the state of New York and are public purposes. Accordingly, the
authority shall be regarded as performing an essential governmental
function in the exercise of the powers conferred upon it by this title.
The property of the authority, its income and its operations shall be
exempt from taxation, assessments, special assessments and ad valorem
levies. 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, their transfer and 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, moneys, and
other property pledged to pay or to secure the payment of such bonds
shall at all times be exempt from taxation.