TVA Tax Equivalent Payments Total $579 Million In 2012

Monday, November 19, 2012

The Tennessee Valley Authority provided a record $579 million in tax equivalent payments in fiscal year 2012 to states and local governments where it sells electricity or has power properties.

TVA pays tax equivalent payments annually in the eight states where it sells electricity or owns generating plants, transmission lines, substations and other assets, and directly to 146 local governments where TVA owns power facilities.

"These funds provided by TVA play a significant role in the continued economic development, improved quality of life, and strong community growth across TVA’s service region,” said TVA President and CEO Tom Kilgore. “The payments also are an important part of TVA’s mission to help the consumers we serve every day.”

The TVA board of directors at its Nov. 15 meeting in Scottsboro, Ala., approved the final tax equivalent payment for fiscal year 2012. This year’s payments totaled $49 million more than 2011.

The following payments were made to each state in fiscal year 2012:

· Alabama - $122,665,588

· Georgia - $9,409,090

· Illinois - $550,070

· Kentucky - $46,755,942

· Mississippi - $40,878,879

· North Carolina - $2,837,202

· Tennessee - $354,389,772

· Virginia - $1,534,406

· Total - $ $579,020,949

The TVA board also approved estimated tax equivalent payments of $536 million for fiscal year 2013. That reduced estimate is attributed to a slow economy and less TVA power sales revenues due to milder, warmer weather last winter resulting in less electricity used for heating.

TVA returns five percent of power sales revenues from the previous year in the form of tax equivalent payments. The funds are distributed in monthly payments, with final payments approved at the end of each fiscal year.

The payments compensate state and local governments that cannot levy property or sales taxes on TVA as a federal entity, and make TVA one of the largest “taxpayers” in Tennessee and Alabama. In addition to the seven states and many counties in the Tennessee Valley region, the state of Illinois and two of its counties receive payments for coal reserves TVA owns there.

State and local governments distribute the funds according to their own formulas and discretion to support a variety of initiatives, including schools, fire departments and other emergency response agencies, tourism and recreation, and human service organizations. 

Since 1941, TVA has made more than $10.3 billion in tax equivalent payments, with payments in the past 10 years totaling $4.4 billion. 


Miller And Martin Names Nashville Attorney To Head Health Care Practice Group

Miller & Martin PLLC announced that Nashville attorney David Lewis will head the health care practice group for the southeast firm, according to Jim Haley, chairman. Mr. Lewis joined Miller & Martin’s Nashville office in May after serving as the vice president and associate legal counsel at LifePoint Hospitals in Brentwood.  He will be responsible for the ongoing ... (click for more)

Michael Williams Has Law License Suspended

Michael Gregory Williams, of Hamilton County, was suspended from the practice of law on Thursday by Order of the Tennessee Supreme Court for four years.  The suspension will begin on Nov. 9. A Petition for Discipline was filed on Oct. 30, 2013, alleging that Mr. Williams had misappropriated funds from an estate for which he had been appointed administrator and had failed ... (click for more)

Chickamauga Lock To Reopen As Soon As Next Thursday

The U.S. Army Corps of Engineers Nashville District  plans to reopen Chickamauga Lock to all navigation traffic as early as next Thursday. An inspection of the upper gate anchorage and a repair plan were completed today. Chickamauga Lock closed on Monday after a routine inspection revealed a crack in the anchorage of the upper gate. Lt. Col. John Hudson, commander ... (click for more)

Downtown Chattanooga Apartment Complex That Brought $3 Million Profit Exempt From Most Taxes Until 2022 Under PILOT

A downtown Chattanooga apartment complex that recently was sold at a $3 million profit is exempt from most property taxes through 2022 under a PILOT (payment in lieu of taxes) agreement.   No payment of school taxes was included in the deal for Walnut Commons at Walnut Street and Aquarium Way.   The only taxes due on the property for the next eight ... (click for more)

A Vote For Education Is Critical In Tennessee

In a state where just 28 percent of eighth graders are proficient in math and 33 percent are proficient in reading according to national assessments, education is deserving of more attention in 2014 elections. Across the country, more parents are making informed decisions about their child’s education, but for Volunteer State parents without resources, choices are difficult to come ... (click for more)

Roy Exum: Saban: ‘Ratings Don’t Matter’

When the first College Football Playoff rankings were released earlier this week, Alabama football coach Nick Saban got it right on the button when he shrugged, “I don't even care, to be honest with you." "To me, none of it matters, What does it matter?” he laughed at the Tide’s No. 6 ranking. “I mean, it only matters where you end up at the end. So what matters to us is how ... (click for more)