3661 - Tax exemption and tax contract by the state.

§  3661.  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 are in all respects for the benefit of the people  of  the  state  of  New  York  and are public purposes. Accordingly, the  authority shall be regarded  as  performing  an  essential  governmental  function  in the exercise of the powers conferred upon it by this title.  The property of the authority, its income and its  operations  shall  be  exempt  from  taxation,  assessments, special assessments and ad valorem  levies. The authority shall not be required  to  pay  any  fees,  taxes,  special  ad  valorem levies or assessments of any kind, whether state or  local, including, but not limited to, fees, taxes,  special  ad  valorem  levies  or assessments on real property, 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, their transfer and 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,  moneys,  and  other  property  pledged  to  pay or to secure the payment of such bonds  shall at all times be exempt from taxation.