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. 


Chattanooga Chamber Business Calendar Feb. 13-20

Calendar of Events:  February 13-20 TUES/2.16- Red Bank Chamber Council Meeting 12:00 p.m. to 1:00 p.m. Red Bank Community Center: Tom Weathers Drive Brief presentation form Mayor John Roberts on the State of the City followed by speaker Emma Flynn, a local attorney. Meetings cost $10.   WED/2.17- Ooltewah/Collegedale Chamber Council ... (click for more)

Supreme Court Rules Police Stops For Crossing Roadway Markings Do Not Violate Motorists’ Constitutional Rights

In two cases involving motorists crossing roadway markings – one a double yellow centerline and another the right lane “fog line” – the Tennessee Supreme Court has upheld the constitutionality of the officers’ seizures of the vehicles’ drivers, both of whom also were charged with DUI.  In one case out of Williamson County, Linzey Smith was traveling north on I-65 at 3 ... (click for more)

County School Board Considers "Best Practices Audit" On Compliance With Board Policies

The County School Board is considering carrying out a "Best Practices Audit" to determine if board policies are filtering down to the school level. Board member Greg Martin said members of the Superintendent's Student Leadership Council told him that only a fraction of students are familiar with board policies on bullying and other topics. Steve Highlander, another board member, ... (click for more)

Several Central City Schools Overcrowded, School Board Is Told

All the county school overcrowding is not out in the fast-growing East Brainerd and Ooltewah sections, school board members were told Thursday. Several central city schools are far above capacity. East Lake Elementary - with 655 students and a capacity of 493 students - is at 133 percent occupancy. Calvin Donaldson, Orchard Knob Elementary and East Side Elementary also are ... (click for more)

Innocent Until Proven Guilty, Even Athletes

From reading Randy Smith's column on the lawsuit against UT it is pretty evident that he never took a legal course in his life. I was under the impression that in this country one was innocent until proven guilty in a court of law. It appears this no longer applies to athletes(particularly black athletes) in the U.S. in 2016. I have always said that if I am picked for jury duty ... (click for more)

Roy Exum: ‘Chatt2.org’ Needs You Now

A diverse yet powerful panel of community leaders in Nashville delivered a letter to the Metro Nashville Board of Education last week. It was signed by some top men and women who represent a wide-ranking cross section of Tennessee’s largest city and includes education, business, religious and diversity superstars. You need to understand the urgency behind the letter. Davidson County ... (click for more)