The authority is declared to be performing a public function and to be a public body corporate and an instrumentality of the state. Accordingly, the principal of and interest on the bonds must not be taxed by the state or by any county or municipality or taxing district of the state, except inheritance, transfer, and estate taxes.
Exemption from taxation
Tenn. Code Ann. § 54-8-112, under General Provisions.
Tenn. Code Ann. § 54-8-112