Section 7-34-116 - Exemption from taxation(a) So long as a municipality owns any public works, the property and revenue of such public works shall be exempt from all state, county and municipal taxation.(b) Bonds and the income from bonds issued pursuant to this chapter shall be exempt from all state, county and municipal taxation, except inheritance, transfer and estate taxes.Acts 1935 (Ex. Sess.), ch. 33, § 12; C. Supp. 1950, § 4406.53 (Williams, § 4406.45); T.C.A. (orig. ed.), § 6-1316.