Section 1341. 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 the bonds 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 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.