Caucus eyes legislation to recover TVA money
Last Modified: Tuesday, June 3, 2008 at 11:28 p.m.
MONTGOMERY - The 20 Tennessee Valley legislators who formed a caucus in 2005 to lobby for common goals said they will sponsor legislation in 2009 to recover about $6 million the Tennessee Valley Authority pays in lieu of taxes each year to non-TVA counties.
The caucus said in a statement released Tuesday that its 2009 legislative agenda will include sponsoring bills to return TVA money to north Alabama counties, including Colbert, Lauderdale, Franklin and Lawrence, that get their electricity from TVA.
"We're a strong bipartisan group, united by the common goal of looking out for the best interests of north Alabama, and that's what we will continue to do next session," said state Rep. Mike Curtis, D-Greenhill.
House members, in the just-completed special session, sponsored a resolution calling for an end to about $6 million in payments to non-TVA counties.
A law has been on the books for 30 years that allows non-TVA entities to share the in-lieu-of-taxes money that TVA pays counties, even if some are not serviced by the federal utility.
Curtis said caucus counties in the TVA service area deserve a greater share of money that TVA pays to Alabama. In other counties, local taxes paid by power companies go to local county treasuries.
The $6 million in TVA money named in the proposed legislation goes to 14 non-TVA counties that do not allow alcoholic beverage sales.
"Fair is fair, and it doesn't make sense for our counties to subsidize dry counties with TVA in-lieu-of-tax funds," said Rep. Marcel Black, D-Tuscumbia.
Tennessee Valley legislators recently created county development commissions that get additional TVA money for approved projects. Projects may include education, economic development, fire protection, public and mental health, conservation, promoting literacy, recreation, art appreciation, senior services and promoting Alabama-produced agricultural commodities, the caucus said.
"These are funds generated by local consumers, and they address needs in our communities, such as economic development, which provides better job opportunities," said Rep. Tammy Irons, D-Florence.
The legislation will likely be introduced when the regular session begins next winter.
The TVA caucus formed three years ago to address issues affecting the Tennessee Valley area such as TVA in-lieu-of money and protecting the Tennessee River from inter-basin transfers, the caucus said.
Dana Beyerle can be reached at (334) 264-6605.
All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.
Next Article in
Events Calendar More Events Submit Event
- Bus service to begin
- Green sector jobs see slow growth
- Adams lends a helping hand with a switch to DB
- Colbert Legion post memorializes fallen heroes
- European vacation
- Resident hopes homemade sign slows traffic
- 'High gravity' beers pouring into Shoals
- Former principal settles case, takes counselor position
- Testimony ends in capital murder trial
- Local man, 59, faces robbery, assault charges
- Central slips past Rogersville
- Colbert Legion post memorializes fallen heroes
- Bus service to begin
- European vacation
- Offseason work, inseason reward
- Simpson second in Choo Choo event
- Boat show offers view of the past
- Resident hopes homemade sign slows traffic
- News Briefs
- Lauderdale 1 to close for bridge culvert work
Comments
Post a comment | View all comments on this topic.
June 6, 2008 5:21:26 pm
RE: http://www.timesdaily.com/apps/pbcs.dll/article?AID=/20...40324/-1/COMMUNITIES
WHAT TO DO ABOUT PAYMENTS IN LIEU OF TAXES?
Idiocy has been described as doing the same thing over and over expecting a different outcome.
But maybe the Alabama legislature is just being sly like a fox. I still call what they have been doing with TVA's payments idiocy, "bribes" in lieu of taxes from the TVA.
See the rest of this article at http://norsworthyattheshoals.blogspot.com
Ernest Norsworthy
emnorsworthy@earthlink.net
http://norsworthyopinion.com
June 6, 2008 5:44:59 pm
By the constitution, states may not tax the federal government. In areas where the federal government is a major land holder, without the payments, the local governments would tax their inhabitants to the hilt or collapse. DOD makes payments for areas with large military reservations, Agriculture make payments for areas with National Forests, Interior makes payments for areas with National Parks, and Congress makes direct payments to the DC city government.
June 6, 2008 7:21:05 pm
Howard Roark, what you say is true and undisputed. The practice you mention of making in lieu of taxes payments is old and settled.
The issue I see is one of arbitrariness by the TVA to choose an amount of rebate (5 percent of gross sales) but excluding certain other buyers of TVA electricity all wrapped up in an arcane method of disbursements.
And payments even to dry counties in South Alabama, far removed from any TVA activity. And payments too, to Illinois and I believe Florida. Chasing all the oddities of TVA's payment scheme is too much for me.
But the premise of rebates based on more sales/purchases of electricity is not only wrong-headed, it is self-defeating of the direction TVA now chooses to go - conservation. In this time of local and state need, why does not TVA up their arbitrary 5 percent to, say, 10 percent? It would be much more helpful and closer to the real loss of taxes to states and localities tax coffers.
The new rewards scheme would be for those who conserve the most, I mean direct paying customers, should be rewarded for their dilligence and for their prudence by a credit to their bills (or cash).
Can you counter that arguement?
I might add, that the TVA should not even be in the competition of selling a product readily available on the open market by legitimate taxpaying sellers.Ernest Norswotthy
emnorsworthy@earthlink.net
Post a comment | View all comments