TVA Tax Equivalent Payments Total Record $376 Million
November 30, 2006
TVA paid state and local governments a record $376 million in lieu of taxes in 2006, an increase of more than $11 million from the previous year.
“The total payments are up 3 percent from 2005, reflecting continued economic growth in the TVA region and increased power sales,” said TVA President and CEO Tom Kilgore. “TVA’s payments in lieu of taxes are an important source of revenue for local communities, which use the money to help fund their programs and services.”
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 2006 were based on TVA power sales revenue in 2005 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 2006 are:
Alabama $ 93,427,798 Georgia 6,113,871 Illinois 356,774 Kentucky 33,026,901 Mississippi 20,221,776 North Carolina 1,850,072 Tennessee 221,017,704 Virginia 130,711
TVA is the nation’s largest public power provider and is completely self financed. TVA provides power to large industries and 158 power distributors that serve approximately 8.6 million consumers in seven southeastern states. TVA also manages the Tennessee River and its tributaries to provide multiple benefits, including flood damage reduction, navigation, water quality and recreation.
Media Contact
Gil Francis, Knoxville, (865) 632-8031
TVA News Bureau, Knoxville, (865) 632-6000
TVA tax equivalent payment to counties (PDF, 103 kb)