Section 2799-LL. Tax exemption and tax contract by the state

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 and is a  public  purpose.  Accordingly,
  the  authority shall be regarded as performing an essential governmental
  function in the exercise of the powers conferred upon it by this  title,
  and  the authority shall not be required to pay any fees, taxes, special
  ad valorem levies or assessments of any kind, including, but not limited
  to, franchise taxes, sales taxes or other taxes, upon or with respect to
  any  property  owned  by  it  or  under  its  jurisdiction,  control  or
  supervision,  or  upon  the uses thereof, or upon or with respect to its
  activities or operations in furtherance of the powers conferred upon  it
  by  this  title,  or  upon or with respect to any fares, tolls, rentals,
  rates,  charges,  fees,  revenues  or  other  income  received  by   the
  authority.
    2.  Any  bonds  issued pursuant to this title together with the income
  therefrom shall at all times be exempt from taxation.
    3. The state  hereby  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 and the income therefrom and  all  revenues,  monies,  and
  other  property  pledged  to  pay or to secure the payment of such bonds
  shall at all times be free from taxation.