By Budd McLaughlin
The Tennessee Valley Authority provided more than $110 million in tax equivalent payments in fiscal year 2013 to Alabama out of more than $547 million to states and local governments where it sells electricity or has power properties.
TVA said in a statement it makes tax equivalent payments annually in the eight states where it sells electricity or owns generating plants, transmission lines, substations and other assets. Alabama received $110,905,168.
It also makes tax equivalent payments to 146 local governments - including Limestone County - where it owns power facilities.
The payments compensate state and local governments that cannot levy property or sales taxes on TVA as a federal entity, and make TVA one of the largest “taxpayers” in Tennessee and Alabama.
In addition to the seven states and many counties in the Tennessee Valley region, the state of Illinois and two of its counties receive payments for coal reserves TVA owns there.
The utility said this year's payments were $32 million less than the record $579 million distributed last year.
The TVA board has approved estimated tax equivalent payments of $522.4 million for fiscal year 2014, which began Oct. 1. The lower estimate reflects a continuing trend of lower sales and lower revenues due to a slow economy and other factors.