TVA Pays 2013 'Taxes' to Local Governments
The Tennessee Valley Authority provided $547 million in tax equivalent payments in fiscal year 2013 to states and local governments where it sells electricity or has power properties.
TVA pays tax equivalent payments annually in the eight states where it sells electricity or owns generating plants, transmission lines, substations and other assets, and directly to 146 local governments where TVA owns power facilities.
“These funds provided by TVA play a significant role in supporting economic development, public services and quality of life for communities across the TVA region,” said TVA President and CEO Bill Johnson. “The payments are an important part of TVA’s mission to serve the 9 million residents of the Tennessee Valley.”
The TVA board of directors at its Nov. 14 meeting in Oxford, Miss., approved the final tax equivalent payment for fiscal year 2013. This year’s payments were $32 million less than the record $579 million distributed in 2012.
The following payments were made to each state in fiscal year 2013:
• Alabama - $110,905,168
• Georgia - $8,375,366
• Illinois - $492,669
• Kentucky - $46,967,736
• Mississippi - $38,701,853
• North Carolina - $3,010,751
• Tennessee - $337,696,930
• Virginia - $1,259,042
• Total - $547,409,515
The TVA board also approved estimated tax equivalent payments of $522,411,306 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.
TVA returns 5 percent of power sales revenues from the previous year in the form of tax equivalent payments. The funds are distributed in monthly payments, with final payments approved at the end of each fiscal year.
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.
State and local governments distribute the funds according to their own formulas and discretion to support a variety of initiatives, including schools, fire departments and other emergency response agencies, tourism and recreation, and human service organizations.
Since 1941, TVA has made $10.9 billion in tax equivalent payments to state and local entities, with payments in the past 10 years totaling $4.6 billion.
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Last Update on July 06, 2015 17:13 GMT
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Government spokesman Gabriel Sakellaridis said Greek Prime Minister Alexis Tsipras has sought support from all political party leaders and that the government is "fully aware of how crucial the situation is."
Tsipras met with rival party leaders a day after Greeks soundly rejected a proposal by creditors for more austerity measures in exchange for rescue money.
Sakellaridis said the leaders couldn't ignore the people's message for a viable deal that would be fair to the poor, deal with Greece's massive debt and restore liquidity to the hobbled banking system.
ATHENS-Greece (AP) -- International Monetary Fund head Christine Lagarde says the fund stands "ready to assist Greece if requested to do so."
Her statement is the IMF's first reaction to Sunday's decision by Greek voters to reject further austerity measures in return for bailout loans.
Greece is in arrears to the IMF, having failed to pay a 1.5 billion-euro ($1.7 billion) loan due last Tuesday. The IMF said it couldn't get involved in a further bailout of Greece if the country remained in arrears.
The IMF last week also said that Greece would need debt relief as well as new financing worth more than 60 billion euros through 2018 to avoid financial collapse.
Greece is expected to meet with its creditors tomorrow.
ATHENS, Greece (AP) -- On the streets of Athens, Greeks are proud of their toughness and defiance after Sunday's landslide "no" vote against creditors' demands -- but they acknowledge there's still plenty to worry about.
George Papadokostakis, a 34-year-old coffee shop owner, says he's very happy with the referendum result. He says "something happened last night with the Greek people. ... we were in a dead-end situation (but) with the `no' vote we believe there may be something better."
Shoe store worker Nicky Zachary thinks Greeks are tough and united in rejecting austerity. She says "we can live with very little and we can live through difficult situations. And I think after the referendum, the Greek people are united."
ATHENS, Greece (AP) -- Greece's defense minister says three opposition parties have signed a declaration backing Prime Minister Alexis Tsipras (TSEE'-prahs) in bailout negotiations with creditors.
That makes a total of five parties behind the prime minister, who already had the support of his own Syriza (SEER'-ih-zah) party and the junior party in the governing coalition, the Independent Greeks.
Defense Minister Panos Kammenos says the support heralds a "new era" in Greek politics and would boost Athens' chances of reaching a deal with European and international creditors.
Tsipras convened a meeting of party leaders today, a day after winning a bailout referendum that rejected creditors' previous demands. Following the vote, Greece's finance minister resigned, and he's already been replaced.
GREECE-BAILOUT: FINANCE MINISTER
ATHENS, Greece (AP) -- The Greek government has named Euclid Tsakalotos as the country's new finance minister, a day ahead of an emergency meeting with creditors in Brussels.
The 55-year-old economist was Prime Minister Alexis Tsipras' lead bailout negotiator in talks that halted last month before Tsipras called a bailout referendum. In that referendum, Greeks overwhelmingly voted against recent creditor proposals required for bailout cash.
Tsakalotos replaces fellow-economist Yanis Varoufakis who quit earlier Monday, saying his departure would help bailout negotiations reach an agreement.
UNDATED (AP) -- Credit ratings agency Fitch says Greece's `no' vote in Sunday's austerity referendum "dramatically increases" the risk of the country leaving the eurozone.
Fitch said a deal between Greece and its creditors remains possible but that there's little time. The agency said the resignation of Finance Minister Yanis Varoufakis signals the Greek government's desire to again start talking with its creditors.
It said creditors could make stronger commitments on easing Greece's huge debt but were unlikely to make big concessions on austerity measures. In addition, Fitch said the European Central Bank may find a way to provide hobbled Greek banks with additional liquidity while negotiations continued.
Markets steadied on the news of Varoufakis' resignation to not register further falls. Germany's DAX ended 1.5 percent lower, while the euro was up 0.8 percent on the day just below $1.11.
WASHINGTON (AP) -- U.S. service firms grew at a slightly faster pace in June, as business activity and new orders increased.
The Institute for Supply Management says its services index edged up to 56 in June from 55.7 in May. Any reading over 50 indicates that services firms are expanding.
Steady hiring over the past year has fueled a consumer spending rebound from a winter slump. Many economists say the economy will expand at an annual rate of 2.5 per cent in the second quarter, after shrinking during the first three months of 2015.
Still, the index's hiring component slipped in June to 52.7 from 55.3 in May, which indicates that the rate of job growth might slow.
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Takahiro Hachigo, an engineer who has worked in the U.S. as well as China, talked to reporters today after his appointment was approved by shareholders and the company board.
Honda's brand image has suffered after a series of massive recalls for popular vehicles in Japan, as well as for defective Takata air bags in global markets.
Hachigo's promise to turn the company around centers on raising the efficiency of global manufacturing and delivering on what he calls Honda-like products. But he's been a little short on specifics.
NEW YORK (AP) -- These Oreos are for adults. That's what the parent company of the Nabisco treat is saying about the new "Oreo Thins."
Mondelez International says Oreo Thins still have the same cookie to cream ratio, but they're thinner. And each cookie is 140 calories as opposed to the 160-calorie regular Oreo cookie.
Mondelez calls Oreo Thins a "sophisticated" snack for grown-ups that isn't meant to be twisted or dunked.
The thinner cookie joins the permanent lineup of Oreo cookies starting next week in the U.S.
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