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TVA Electric Payment

Tax Types >
  • TVA Electric Payment

Resources

Authority

Sections 40-28-1 through 40-28-5, Code of Alabama 1975.

The Tennessee Valley Authority (TVA) makes annual payments to Alabama, in lieu of taxes, under federal law, 16 U.S.C. Section 831.

17% to State General Fund.

83% to Direct-served counties.

The direct-served counties’ share is allocated among the counties using
formulae that analyze:

TVA industrial/residential power sales ratios; book value ratios of TVA
property; and construction in counties where TVA services are provided.

Prior to fiscal year 2010, the dry (non-alcoholic) non-served counties were allocated 5% of the TVA payments and the direct-served counties were allocated 78%. Beginning with fiscal year 2010, the portion allocated to the dry non-served counties was reduced by the increase in certain liquor tax revenues, until the replacement liquor tax revenues equaled the amount of the TVA payments allocated to the dry non-served counties for fiscal year 2009. Thereafter, the portion previously allocated to the dry non-served counties is being allocated to the direct-served counties.