Section 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.