TVA paid state and local governments more than $505 million in lieu of taxes in 2009, an increase of 10.5 percent from the previous year.
The total paid to Cannon County is $305,852, representing $7.175 in direct payment and $298,687 through state allocations.
TVA will pay an estimated $538 million in lieu of taxes in 2010. The TVA Board today approved the final payment for 2009 and the 2010 estimated payments.
TVA makes tax equivalent payments to eight states and to local governments within those states in accordance with the TVA Act. Payments made during 2009 were based on TVA power sales revenue in 2008 and TVA-owned power property in each state. During the fiscal year, TVA makes monthly payments based on preliminary forecasts.
“Each year, TVA’s tax equivalent payments provide an important source of revenue for communities throughout the Tennessee Valley,” said TVA President and CEO Tom Kilgore. “City and county governments use the tax equivalent payments for schools, roads and many other local programs and services.”
TVA has made 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 TVA service area, the public utility makes payments to Illinois for coal reserves in the state owned by TVA.
Total payments by TVA to Tennessee and it's counties for fiscal year 2009 was $295,197,502.