Reviewed Date: 10/27/2020
Revenue Class: Intergovernmental Revenue
Account No.: 33591
Description: TVA pays five percent of gross power sales proceeds to the state in lieu of taxes. 48.5 percent of the increase in TVA payments made to the State of Tennessee above the amount received in the base year (1977-1978) is distributed to county and municipal governments.
Authorization: T.C.A. § 67-9-101 et seq. and 16 USC 831i
Requirements or Restrictions: Before making the 30 percent of the 48.5 percent distribution to cities and counties, the state deducts $4,462 monthly and appropriates it to the Tennessee Advisory Commission on Intergovernmental Relations (TACIR).
Current Rate: Thirty percent of 48.5 percent (minus $4,462) collected above the base rate set in 1978 to cities based upon population.
Frequency of Payment: Quarterly.
Late Pay Penalty: N/A
Collection: State remits municipality’s share quarterly.
Use Restrictions: None