Section 1163. Exemption from taxes

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  is  a  public  purpose.   Accordingly, the authority shall be
  regarded  as  performing  an  essential  governmental  function  in  the
  exercise  of  the  powers  conferred  upon  it  by  this  title, and the
  authority shall not be required to  pay  any  fees,  taxes,  special  ad
  valorem  levies  or  assessments  of  any  kind, whether state or local,
  including but not limited to fees, taxes, special ad valorem  levies  or
  assessments  on  real  property,  franchise  taxes, sales taxes or other
  taxes, upon or with respect to any property owned by  it  or  under  its
  jurisdiction,  control or supervision, or upon the uses thereof, or upon
  or with respect to its activities or operations in  furtherance  of  the
  powers  conferred  upon  it by the title, or upon or with respect to any
  fares, tolls, rentals, rates, charges, fees, revenues  or  other  income
  received by the authority.
    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
  exempt from taxation, except for transfer and estate taxes.