Section 1981. Exemption from taxes

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  state  of  New
  York, the county of New York, and the city, 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 upon any of the properties acquired  by  it  or
  under its jurisdiction or control or supervision or upon its activities.
    2.  All  bonds,  notes  and  other obligations issued pursuant to this
  title, together with the income therefrom, as well  as  the  income  and
  property  of  the  authority,  shall be exempt from taxation, except for
  transfer and estate taxes.