N.Y. PBA Law § 665

§ 665. Tax contract by the state. It is hereby found, determined and\ndeclared that the authority and the carrying out of its corporate\npurposes is in all respects for the benefit of the people of the state\nof New York, for the improvement of their health, welfare and\nprosperity, and for the promotion of their traffic and recreation, and\nthat said purposes are public purposes and the project is an essential\npart of the public highway, park and recreational system and the\nauthority will be performing an essential governmental function in the\nexercise of the powers conferred by this title, and the state of New\nYork covenants with the purchasers and with all subsequent holders and\ntransferees of notes and bonds issued by the authority pursuant to this\ntitle, in consideration of the acceptance of and payment for the notes\nand bonds that the notes and bonds of the authority issued pursuant to\nthis title and the income therefrom, and all moneys, funds, tolls and\nother revenues pledged to pay or secure the payment of such notes and\nbonds, shall at all times be free from taxation except for estate taxes\nand taxes on transfers by or in contemplation of death.\n