Section 1596-N. Tax contract by the state

The state of New York covenants
  with the purchasers and with all subsequent holders and  transferees  of
  bonds  issued  by the authority pursuant to this title, in consideration
  of the acceptance of and payment for the bonds, that the  bonds  of  the
  authority  issued  pursuant  to this title and the income therefrom, and
  all moneys, funds and revenues pledged to pay or secure the  payment  of
  such  bonds,  shall at all times be free from taxation except for estate
  taxes and taxes on transfers by or in contemplation of death.