Roane County to Receive Impact Payments from Kingston Recovery
Oct. 7, 2009
TVA has notified the state of Tennessee that Roane County and municipalities in the county are eligible for additional impact payments because of the Kingston ash spill recovery project. Payments from the state could begin as early as November.
Roane County and cities in the county currently receive about $271,000 annually in impact payments based on the construction of Unit 2 at Watts Bar Nuclear Plant in nearby Spring City, Tenn. With the addition of the impact payments for the Kingston recovery project, that amount will increase to an estimated $677,000, if TVA revenues and allocations are similar to last year’s.
The state sets aside a portion of TVA’s annual tax equivalent payments to distribute to counties designated by TVA as impacted by major construction activities. The Tennessee Department of Revenue distributes the impact funds annually during the construction and for one fiscal year after the end of significant construction activity. Designated counties also receive reduced impact payments for the following three years.
Roane County and four other Tennessee counties are currently receiving the Watts Bar construction impact payments.
Impact payments to Roane County will be in addition to the TVA tax-equivalent funds distributed by the state to the county. Because it is a government agency, TVA is not subject to sales and franchise or property taxes but makes annual payments in lieu of property taxes to eight states and local governments within those states in accordance with the TVA Act. Payments are based on the amount of TVA power sales revenue and TVA-owned property in each state.
TVA is the nation’s largest public power provider and is completely self-financing. TVA provides power to large industries and 158 power distributors that serve approximately 9 million consumers in seven southeastern states. TVA also creates economic development opportunities and manages the Tennessee River and its tributaries to provide multiple benefits, including flood damage reduction, navigation, water quality and recreation.
TVA News Bureau, Knoxville, (865) 632-6000