Section 1590-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.