§ 665. Tax contract by the state. It is hereby found, determined and
declared that 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 for the promotion of their traffic and recreation, and
that said purposes are public purposes and the project is an essential
part of the public highway, park and recreational system and the
authority will be performing an essential governmental function in the
exercise of the powers conferred by this title, and the state of New
York covenants with the purchasers and with all subsequent holders and
transferees of notes and bonds issued by the authority pursuant to this
title, in consideration of the acceptance of and payment for the notes
and bonds that the notes and bonds of the authority issued pursuant to
this title and the income therefrom, and all moneys, funds, tolls and
other revenues pledged to pay or secure the payment of such notes and
bonds, shall at all times be free from taxation except for estate taxes
and taxes on transfers by or in contemplation of death.