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 May 26, 2015 17:47 GMT
CHARTER-TIME WARNER CABLE
NEW YORK (AP) -- Charter Communications will spend $55.33 billion to acquire Time Warner Cable in a cash-and-stock deal that would instantly create one of the largest pay-television and broadband operators in the U.S.
As part of the agreement, Charter will also buy Bright House Networks for more than $10 billion.
Charter will provide $100 in cash and shares of a new public parent company equal to 0.5409 shares of Charter for each outstanding Time Warner Cable Inc. share. The transaction values each Time Warner Cable share at about $195.71.
The companies on Tuesday valued Time Warner Cable at a total of $78.7 billion.
Shares of Charter Communications Inc. are up more than 3 percent in premarket trading.
WASHINGTON (AP) -- Orders to U.S. factories for long-lasting manufactured goods fell slightly in April. But orders in a category that indicates business investment posted a second increase, a hopeful sign that this key sector is starting to revive.
The Commerce Department says that total orders for durable goods slipped 0.5 percent from March, when total orders had surged 5.1 percent. The big swing was driven by changes in commercial aircraft, an extremely volatile category that had jumped in March but fell in April.
Orders in the business investment category rose 1 percent in April after a 1.5 percent increase in March. The results followed a sizable 5.1 percent fall in February. Business investment has been hurt by a stronger dollar cutting into exports and cutbacks in the energy industry.
WASHINGTON (AP) -- The Conference Board says consumer confidence rebounded this month as the job market showed signs of improvement.
The business research group's consumer confidence index rose to 95.4 in May from 94.3 in April. The April reading had been sharp drop from March's 101.4.
Consumers' assessment of current economic conditions improved, but their outlook for the next six months slipped. Their expectations for the for the job market improved, however.
Employers added a healthy 223,000 jobs last month, up from a lackluster 85,000 in March. And the unemployment rate slid to 5.4 percent, lowest since May 2008, six months into the Great Recession.
NEW HOME SALES
WASHINGTON (AP) -- More Americans bought new homes in April -- fresh evidence that the improved job market is powering the real estate sector.
The Commerce Department says new-home sales climbed 6.8 percent last month to a seasonally adjusted annual rate of 517,000. Sales recovered from an annual pace of 484,000 in March.
Purchases of new homes are volatile on a monthly basis, although sales during the first four months of 2015 are 23.7 percent higher than in 2014. Employers have added 3.1 million jobs over the past year, with those new paychecks starting to trickle into housing.
Sales increased in the Midwest and South last month, while slumping in the Northeast and West where prices are generally higher.
The median sales price has risen 8.3 percent since April 2014 to $297,300.
WASHINGTON (AP) -- U.S. home prices rose at a steady pace in March, pushed higher by a limited supply of houses for sale.
The Standard & Poor's/Case-Shiller 20-city home price index rose 5 percent in March from 12 months earlier. Prices increased at the same pace in February.
Home values are rising at a faster rate than incomes, potentially pricing many would-be buyers out of the market. Yet current increases have moderated from the double-digit gains of late 2013 and early last year.
The biggest increases were in San Francisco and Denver, where prices rose 10.3 percent and 10 percent respectively.
The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The March figures are the latest available.
DEUTSCHE BANK-SEC SETTLEMENT
WASHINGTON (AP) -- Germany's Deutsche Bank AG has agreed to pay $55 million to settle civil charges of filing incorrect reports during the financial crisis that downplayed risks of huge losses.
The U.S. Securities and Exchange Commission announced the settlement Tuesday with the big German bank, which is a prominent institution on Wall Street. Deutsche Bank neither admitted nor denied the allegations but did agree to refrain from future violations of the securities laws.
The SEC said that in some quarterly reports in 2008, Deutsche Bank inflated the value of its transactions designed to hedge against losses on securities in the credit markets, which were turbulent at the time. That created a "gap risk" worth billions of dollars that wasn't properly taken into account in the bank's reports, the agency said.
BEIJING (AP) -- An official of the International Monetary Fund says it believes China's currency is no longer undervalued -- a stance that might help Beijing in its wrangling with Washington over exchange rate controls.
The IMF's first deputy managing director, David Lipton, also said Tuesday that Beijing should work toward having a floating exchange rate in two to three years.
Lipton spoke after meeting Chinese officials to discuss economic and financial policy.
The United States and some other governments have complained for years that China suppresses the value of its currency, the yuan, giving its exporters an unfair price advantage and hurting their foreign competitors.
Referring to the yuan, Lipton said that after recent changes in global exchange rates, "We believe that it is no longer undervalued."
LONDON (AP) -- A British prosecutor says a former Citibank and UBS trader motivated by greed served as the ringmaster in the alleged manipulation of a key interest rate, the London Interbank Lending Rate, or Libor.
The charges against trader Tom Hayes, who specialized in products pegged to yen-denominated Libor, relate to the period from August 2006 to September 2010. He is charged with conspiring with employees from other leading institutions.
Prosecutor Mukul Chawla says the 35-year-old Hayes' greed "led to his dishonesty on an enormous scale."
Libor is a key rate that banks use to borrow from each other. Indirectly, the rate affects what people pay when they take out loans, such as a car loan.
Hayes denies all eight charges in the case that opened Tuesday at Southwark Crown Court.
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