N.Y. Pub. Auth. Law § 1685

§ 1685. Exemptions from taxation. It is hereby found, determined and\ndeclared that the creation of the authority and the carrying out of its\ncorporate purposes is in all respects for the benefit of the people of\nthe state of New York, for the improvement of their education, welfare\nand prosperity, and is a public purpose, and that the dormitories of the\nauthority are an essential part of the state education system, and that\nthe authority will be performing an essential governmental function in\nthe exercise of the powers conferred upon it by this title, and the\nstate of New York covenants with the holders of the bonds that the\nauthority shall be required to pay no taxes or assessments upon any of\nthe property acquired by it or under its jurisdiction, control,\npossession or supervision or upon its activities in the operation and\nmaintenance of such dormitories or any moneys, revenues or other income\nreceived by the authority and that the bonds of the authority and the\nincome therefrom shall at all times be exempt from taxation, except for\ntransfer and estate taxes.\n