Section 1916. Tax contract by the state

The state of New York covenants
  with the purchasers and with all subsequent holders and  transferees  of
  bonds  issued  by the authority pursuant to this title, in consideration
  of the acceptance of and payment for the bonds, that the  bonds  of  the
  authority  issued  pursuant  to  this  title,  in  consideration  of the
  acceptance of and payment for the bonds, that the bonds 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,
  shall at all times be free from taxation except for transfer and  estate
  taxes.