Section 1776 - Exemption from taxation1.It is hereby determined that the creation of the authority and the carrying out of its corporate purposes is in all respects for the benefit of the people of the state and of the hospital district and its environs for the improvement and care of their health and general welfare, and is a public purpose. The authority shall be regarded as performing an essential governmental purpose and function in the exercise of the powers conferred upon it by this title and shall be required to pay no taxes or assessments upon any of the properties acquired by the authority or under its jurisdiction, control or supervision or upon its activities, or any revenue, contributions or other income received by the authority.2.The state covenants with the purchasers and with all subsequent holders and transferees of bonds or notes issued by the authority pursuant to this title, in consideration of the acceptance of and payment for the bonds or notes, that the bonds and notes of the authority, issued pursuant to this title, and the income therefrom and all moneys, funds, and revenues pledged to pay or secure the payment of such bonds or notes, shall at all times be free from taxation except for estate or gift taxes and taxes on transfers by or in contemplation of death.N.Y. Pub. Auth. Law § 1776