Section 1299-QQ. Exemption from taxation

It is hereby found, determined and
  declared  that the creation of the authority and the carrying out of its
  purposes is in all respects for the benefit of the people of  the  state
  of  New  York  and  for  the  improvement  of  their health, welfare and
  prosperity and is a public purpose,  and  that  the  authority  will  be
  performing  an  essential  governmental  function in the exercise of the
  powers conferred upon it by this title. Without limiting the  generality
  of  the  following  provisions  of  this  section, property owned by the
  authority and used for transportation purposes, property leased  by  the
  authority  and  used  for transportation purposes, and property used for
  transportation  purposes  by  or  for  the  benefit  of  the   authority
  exclusively pursuant to the provisions of a joint service arrangement or
  of  a  joint facilities agreement or trackage rights agreement shall all
  be exempt from taxation and special ad  valorem  levies.  The  authority
  shall be required to pay no fees, taxes or assessments, whether state or
  local, except special benefit assessments if said property is located in
  a  special benefit district, including but not limited to fees, taxes or
  assessments on real estate, franchise taxes, sales taxes or other excise
  taxes, upon any of its property, or upon the uses thereof, or  upon  its
  activities  in the operation and maintenance of its facilities or on any
  fares, tolls, rentals, rates, charges or other fees, revenues  or  other
  income received by the authority and all bonds, notes and obligations of
  the authority and the income therefrom shall at all times be exempt from
  taxation,  except for gift and estate taxes and taxes on transfers. This
  section shall constitute a covenant and agreement with  the  holders  of
  all  bonds,  notes  and  obligations  issued by the authority. The terms
  "taxation" and "special ad valorem levy" shall have the same meanings as
  defined in section one hundred two of the real property tax law and  the
  term  "transportation  purposes"  shall have the same meaning as used in
  titles two-a and two-b of article four of such law.