Tva Tax Equivalent Payments Total $365 Million
The Tennessee Valley Authority (TVA) paid state and local governments a record $365 million in lieu of taxes in 2005, an increase of more than $27 million over the prior year, TVA Chairman Bill Baxter has announced.
“TVA’s tax equivalent payments benefit local communities that use the funds for schools, roads, and other important programs and services,” Baxter said. “The total payments are up 8.1 percent from the previous year, reflecting continued economic growth in the TVA region and increased power sales.”
TVA makes tax equivalent payments to eight states and to local governments within those states in accordance with the TVA Act. The tax equivalent payments made during 2005 were based on TVA power sales revenue in 2004 and TVA-owned power property in each state. During the fiscal year, TVA makes monthly payments based on preliminary forecasts.
TVA has been making tax equivalent payments since 1933. Most of the money is paid directly to state governments. However, all or part of the amount paid by TVA is redistributed to local governments according to formulas in each state.
In addition to the seven states in the service area, TVA makes payments to the state of Illinois for coal reserves owned by TVA.
Total payments by TVA to each state and county for fiscal year 2005 are:
North Carolina $1,818,825
TVA is the nation’s largest public power producer, and its power system is self financed. TVA provides power to large industries and 158 power distributors that serve 8.6 million consumers in seven southeastern states.