§ 566. Exemptions from taxation. It is hereby found, determined and
declared 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, for the improvement of their health, welfare and
prosperity, and, in the case of some of the said purposes, for the
promotion of their traffic, and is a public purpose, and that, in the
case of those purposes which consist of vehicular bridges, vehicular
tunnels and approaches thereto, the project is an essential part of the
public highway system, and that the authority will be performing an
essential governmental function in the exercise of the powers conferred
upon it by this title, and the state of New York covenants with the
holders of the bonds that the authority shall be required to pay no
taxes or assessments upon any of the property acquired by it or under
its jurisdiction, control, possession or supervision or upon its
activities in the operation and maintenance of the project or any tolls,
revenues or other income received by the authority and that the bonds of
the authority and the income therefrom shall at all times be exempt from
taxation, except for transfer and estate taxes. This section shall
constitute a covenant and agreement with the holders of all bonds issued
prior to January first, nineteen hundred thirty-nine.