Section 1216. Exemption from taxation and fees

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 property leased by the authority and used for any
  of its authorized purposes shall 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, 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 use 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
  and  notes  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 and notes 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.