TVA Tax Equivalent Payments Total Record $328 Million
November 20, 2002
TVA will pay state and local governments a record $328.3 million in tax equivalent payments this year, an increase of more than $13.2 million over last year.
The TVA Board today approved final payments for the 2002 fiscal year at a meeting in Starkville, Mississippi. TVA makes tax equivalent payments to eight states and to counties within those states.
“These payments help communities across the Tennessee Valley improve the quality of life by providing funds for education, roads, and other needed programs and services,” TVA Chairman Glenn McCullough Jr. said. “The programs, services, and community improvements funded with TVA tax equivalent payments enhance economic growth for the people we serve through local distributors of TVA power.”
The tax equivalent payments are based on TVA power sales revenue in 2001 and TVA-owned power property in each state. During the fiscal year, TVA makes monthly payments to states and counties 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.
The total payments by TVA to each state and county for fiscal year 2002 are:
- Alabama: $78,375,025
- Georgia: $5,057,544
- Illinois: $330,461
- Kentucky: $23,911,703
- Mississippi: $17,759,682
- North Carolina:
$1,547,732
- Tennessee: $201,263,922
- Virginia: $80,604
TVA is the nation’s largest public power producer, and its power system is self-financed. It provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.
Media Contact:
Gil Francis, Knoxville (865-632-8031) or TVA News Bureau, Knoxville (865-632-6000)
