Section 1425-O. Tax contract by the state

The state of New York covenants
  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 and 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.