Section 1939-D. Exemptions from taxation

It is hereby found, determined and
  declared  that the creation of the authority and the carrying out of its
  corporate purposes will help to  alleviate  juvenile  delinquency,  will
  improve the general health and welfare, will in all respects benefit the
  people  of  the  state,  and in particular, the residents of the capital
  district and the city, and constitutes a public purpose,  and  that  the
  authority  will  be performing an essential governmental function in the
  exercise of the powers conferred upon it by this title,  and  the  state
  covenants  with  the  holders  of  the bonds that the authority shall be
  required to pay no  taxes  or  assessments  upon  any  of  the  property
  acquired  by  it  or  under  its  jurisdiction,  control,  possession or
  supervision or upon its activities in the operation and  maintenance  of
  the  project  or  any  tolls,  revenues  or other income received by the
  authority and that the bonds of the authority and the  income  therefrom
  shall  at  all  times  be  exempt from taxation, except for transfer and
  estate taxes.