Section 1585-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  Port  Jervis
  and  its  environs,  and is a public purpose, and the authority shall be
  regarded as performing a 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.