N.Y. Gen. Mun. Law § 876

§ 876. Tax contract by the state. The state covenants with the\npurchasers and with all subsequent holders and transferees of bonds or\nnotes issued by the agency pursuant to this title, in consideration of\nthe acceptance of and payment for the bonds or notes, that the bonds and\nnotes of the agency issued pursuant to this title and the income\ntherefrom, and all moneys, funds and revenues pledged to pay or secure\nthe payment of such bonds or notes shall at all times be free from\ntaxation except for estate taxes and taxes on transfers by or in\ncontemplation of death.\n