Section 886. Exemptions from taxation

1. It is hereby determined 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  and  it is a public purpose and the authority shall be regarded as
  performing a  governmental  function  in  the  exercise  of  the  powers
  conferred  upon  it  by this title and shall be required to pay no taxes
  upon any of the properties acquired by it or under its  jurisdiction  or
  control or supervision or upon its activities.
    2. Any bonds or notes issued pursuant to this title, together with the
  income  therefrom,  as  well  as the property of the authority, shall be
  free from taxation, except for transfer and estate taxes.