N.Y. Pub. Auth. Law § 1807

§ 1807. Exemption from taxation of bonds and notes of the authority.\nThe state covenants with the purchasers and with all subsequent holders\nand transferees of bonds and notes issued by the authority pursuant to\nthis title, in consideration of the acceptance of and payment for the\nbonds and notes, that the bonds and notes of the authority issued\npursuant to this title and the income therefrom, and all moneys, funds\nand revenues pledged to pay or secure the payment of such bonds shall at\nall times be free from taxation, except for estate and gift taxes and\ntaxes on transfers.\n