# Tenn. Code Ann. § 67-5-205: Government bonds and notes

> Tennessee · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-205

## Section

- **Citation:** Tenn. Code Ann. § 67-5-205
- **Heading:** Government bonds and notes
- **Jurisdiction:** Tennessee
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TN Code / Title 67 / Chapter 5 / Section 67-5-205

## Text

(a) (1) Whenever the state of Tennessee, or any agency thereof, shall issue any bonds or notes for any public purpose, without regard to when issued, neither the principal of nor the interest on such bonds or notes shall be taxed by this state or by any county or municipality or taxing district of this state, except inheritance, transfer and estate taxes. (2) Whenever any county or any agency thereof shall issue any bonds or notes for any public purpose, without regard to when authorized, neither the principal nor the interest of such bonds or notes shall be taxed by the state or by any county or municipality in this state. (3) Whenever any incorporated town or city, or any agency thereof, shall issue any bonds or notes, without regard to when authorized, for any public purpose, neither the principal of nor the interest on such bonds or notes shall be taxed by this state or by any county or municipality of this state. (b) In the event the courts of this state shall hold that any of this section is invalid and that such bonds or notes are taxable, such holding shall not affect the validity of any bonds or notes so issued. Acts 1973, ch. 226, § 5; 1977, ch. 2, § 1; T.C.A., §§ 67-503 -- 67-506; Acts 2001, ch. 28, § 1.
(a) (1) Whenever the state of Tennessee, or any agency thereof, shall issue any bonds or notes for any public purpose, without regard to when issued, neither the principal of nor the interest on such bonds or notes shall be taxed by this state or by any county or municipality or taxing district of this state, except inheritance, transfer and estate taxes. (2) Whenever any county or any agency thereof shall issue any bonds or notes for any public purpose, without regard to when authorized, neither the principal nor the interest of such bonds or notes shall be taxed by the state or by any county or municipality in this state. (3) Whenever any incorporated town or city, or any agency thereof, shall issue any bonds or notes, without regard to when authorized, for any public purpose, neither the principal of nor the interest on such bonds or notes shall be taxed by this state or by any county or municipality of this state.
(1) Whenever the state of Tennessee, or any agency thereof, shall issue any bonds or notes for any public purpose, without regard to when issued, neither the principal of nor the interest on such bonds or notes shall be taxed by this state or by any county or municipality or taxing district of this state, except inheritance, transfer and estate taxes.
(2) Whenever any county or any agency thereof shall issue any bonds or notes for any public purpose, without regard to when authorized, neither the principal nor the interest of such bonds or notes shall be taxed by the state or by any county or municipality in this state.
(3) Whenever any incorporated town or city, or any agency thereof, shall issue any bonds or notes, without regard to when authorized, for any public purpose, neither the principal of nor the interest on such bonds or notes shall be taxed by this state or by any county or municipality of this state.
(b) In the event the courts of this state shall hold that any of this section is invalid and that such bonds or notes are taxable, such holding shall not affect the validity of any bonds or notes so issued.
Acts 1973, ch. 226, § 5; 1977, ch. 2, § 1; T.C.A., §§ 67-503 -- 67-506; Acts 2001, ch. 28, § 1.

## Nearby sections

- [Tenn. Code Ann. § 67-5-101 Property subject to tax generally](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-101.md)
- [Tenn. Code Ann. § 67-5-102 Taxation by county](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-102.md)
- [Tenn. Code Ann. § 67-5-103 Taxation by municipality](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-103.md)
- [Tenn. Code Ann. § 67-5-104 Locality does not meet municipality requirements](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-104.md)
- [Tenn. Code Ann. § 67-5-105 Chapter definitions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-105.md)
- [Tenn. Code Ann. § 67-5-201 Real property transferred between exempt and nonexempt persons](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-201.md)
- [Tenn. Code Ann. § 67-5-202 Trust estates](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-202.md)
- [Tenn. Code Ann. § 67-5-203 Government property](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-203.md)
- [Tenn. Code Ann. § 67-5-204 Public ways](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-204.md)
- [Tenn. Code Ann. § 67-5-205 Government bonds and notes](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-205.md)
- [Tenn. Code Ann. § 67-5-206 Housing authorities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-206.md)
- [Tenn. Code Ann. § 67-5-207 Religious, charitable, scientific, educational institutions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-207.md)
- [Tenn. Code Ann. § 67-5-208 Recycling waste products](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-208.md)
- [Tenn. Code Ann. § 67-5-209 Private act hospital authorities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-209.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T67_C5_S67-5-205. Check the current official text before relying on it. Not legal advice.