Any bonds or notes issued by a local government pursuant to this chapter and the income therefrom shall be exempt from all state, county and municipal taxation except for inheritance, transfer and estate taxes, and except as otherwise provided in this code.
Tax exemption
Tenn. Code Ann. § 9-21-117, under General Provisions Applicable to All Bonds and Notes Issued by Local Governments.
Tenn. Code Ann. § 9-21-117