TVA Board Meeting - FY24 Financial plan and budget- Reso-Memo
within a state under Section 15d(g) will be deducted from the payment otherwise due to the state under the provisions of the TVA Act.
After payments are calculated and allocated to the applicable counties, the remaining portion of the tax equivalent payments allocated to each state are distributed to the state by TVA in equal monthly installments. Each state then distributes its tax equivalent payments based upon the individual state’s distribution methodology, as dictated by state legislation. TVA has no direct participation in the allocation or distribution of the overall state payments.
Calculation Details
The aggregate final payments for fiscal year 2023 were approximately $611 million. The total payments were distributed among the eight state governments and their counties as shown below.
During fiscal year 2023, direct ad valorem payments to counties of approximately $21.3 million will be paid on power property purchased and operated by TVA and on that portion of land acquired for reservoir purposes allocated or estimated to be allocable to power. In addition, the payment to the State of Mississippi in fiscal year 2023 was offset by approximately $1.3 million, which represents a portion of the tax payments associated with a facility that TVA leases in Lowndes County, Mississippi.
Recommended Board Actions
1. Finalization of Tax Equivalent Payments for Fiscal Year 2023
On July 28, 2022, the Board authorized monthly payments during fiscal year 2023 at 98 percent of one-twelfth of the estimated allocation to each state. The states have received equal monthly payments at this rate beginning in October 2022. The Proposed Board Resolution would ensure that the total amount of the payments that the states receive in fiscal year 2023 conform to the total amount payable, as calculated based upon audited financial data.
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