Section 1621-N. Tax exemptions

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 city of Middletown and
  its environs, and is a  public  purpose,  and  the  authority  shall  be
  regarded  as  performing  an  essential  governmental  function  in  the
  exercise of the powers conferred upon it by  this  title  and  shall  be
  required  to  pay  no  taxes  or  assessments  upon  any of the property
  acquired by it or under its jurisdiction or control  or  supervision  or
  upon its activities.
    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.