Section 1600-OO. Tax contract by the state

The state of New York convenants
  with  the  purchasers and with all subsequent holders and transferees of
  bonds or notes issued by  the  authority  pursuant  to  this  title,  in
  consideration  of  the acceptance of and payment for the bonds or notes,
  that the bonds or notes 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 or notes, shall at all times  be
  free  from taxation except for estate taxes and taxes on transfers by or
  in contemplation of death.