N.Y. Pub. Auth. Law § 585

§ 585. Bonds and notes to be tax exempt. 1. It is hereby determined\nthat the creation of the authority and the carrying out of its corporate\npurposes is a public purpose, and the authority shall be regarded as\nperforming a governmental function in the exercise of the powers\nconferred upon it by this title and shall be required to pay no taxes or\nassessments upon any of the property acquired by it or under its\njurisdiction or control or supervision or upon its activities, or upon\nthe income therefrom.\n 2. Any bonds or notes issued pursuant to this title, together with the\nincome therefrom, as well as the property of the authority, shall be\nexempt from taxation, except for transfer and estate taxes.\n