TVA Tax Equivalent Payments Total Record $447 Million

November 29, 2007

TVA paid state and local governments a record $447 million in lieu of taxes in 2007, an increase of 19 percent from the previous year.

“TVA’s in-lieu-of-tax payments are an important source of revenue for local communities throughout the Tennessee Valley,” said TVA President and CEO Tom Kilgore. “City and county governments use the money for schools, roads and many other needed programs and services.”

TVA makes the tax equivalent payments to eight states and to local governments within those states in accordance with the TVA Act. Payments made during 2007 were based on TVA power sales revenue in 2006 and TVA-owned power property in each state.

TVA has made tax equivalent payments since 1933. Most of the money is paid directly to state governments, but some tax replacement payments are made directly to counties. All or part of the money paid to states by TVA is redistributed to local governments according to formulas set by 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 2007 are:

Alabama	$112,110,711
Georgia	7,393,797
Illinois	421,149
Kentucky	37,691,687
Mississippi	24,415,892
North Carolina	2,236,737
Tennessee	262,604,964
Virginia	204,315

 

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 8.7 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.

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TVA News Bureau, Knoxville, (865) 632-6000

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