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 January 30, 2015 18:13 GMT
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The Commerce Department says the overall economy grew at a 2.6 percent rate in the October-December period, down from sizzling gains of 4.6 percent in the second quarter and 5 percent in the third quarter.
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The Labor Department says the employment cost index, which measures pay and benefits, rose 2.2 percent in 2014, up from 2 percent the previous year. That's the biggest gain since 2008. It's also ahead of inflation, which rose 1.3 percent.
Yet the increase is still sluggish by historical standards. In a healthy economy, the index usually rises at about a 3.5 percent pace.
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The University of Michigan says that its index of consumer sentiment rose to 98.1 in January from 93.6 last month.
Consumers say the prospects for the U.S. economy are the strongest in a decade, and half of consumers expect the expansion to keep going another five years.
The Michigan survey was the latest evidence that strong job growth and tumbling oil prices have lifted consumers' spirits. The Conference Board on Tuesday reported that its consumer confidence index climbed to the highest level since August 2007. And the Commerce Department reported Friday that consumer spending rose from October through December at the fastest pace in nearly nine years.
DALLAS (AP) -- Pilots at American Airlines and US Airways have approved a single labor contract. That's a step toward combining workforces at the two carriers, which merged in December 2013.
The multiyear deal gives pilots a 23 percent pay raise retroactive to Dec. 2.
The pilots' union said Friday that the contract was approved 66 percent to 34 percent, with 95 percent of eligible pilots casting a vote.
MINNEAPOLIS (AP) -- A jury of six men and six women is continuing deliberations in a case alleging a 1996 Toyota Camry had a design defect that caused a fatal crash.
Jurors received the case late Wednesday afternoon and deliberated all day Thursday without reaching a verdict. They returned to a federal courthouse in Minneapolis on Friday to keep working.
The jurors must decide whether Toyota's design of the 1996 Camry had a defect that was unreasonably dangerous. If they find there was a defect, they must decide if it directly caused injuries to those hurt or killed when Koua Fong Lee crashed into another car in 2006.
Lee spent 2 1/2 years in prison before being released after reports suggested some Toyota cars had sudden acceleration problems.
BERLIN (AP) -- German automaker BMW says it has fixed a security flaw that made 2.2 million of its vehicles vulnerable to break-ins.
The company says the problem affected BMW, Mini and Rolls Royce models equipped with its ConnectedDrive technology, which allows drivers to access certain car functions with a smartphone.
German automobile club ADAC, which discovered the flaw last summer, says hackers could have used a fake cellphone base station to intercept network traffic from the car and lower the windows or open the doors. There are no reports such a break-in ever took place.
BMW spokeswoman Silke Brigl said Friday that hackers wouldn't have been able to start or stop the engine.
Brigl said the problem has been fixed with an automatic update and customers don't need to take any action.
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The ads appeared in national publications, on Internet sites, bus stops, billboards, newsletters and on tags attached to the products.
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