The budget proposal being discussed in the Kentucky General Assembly contains a new infusion of money for counties that are powered by or distribute power for the Tennessee Valley Authority.
As a federal entity, TVA doesn’t pay property taxes on any of its assets in 39 southern and western Kentucky counties. Instead, the utility pays an in-lieu-of tax to the state, which is five percent of its gross sales. Seventy-percent of that money goes back to TVA counties and 30 percent remains in the state’s general fund. State Representative Bart Rowland of Tompkinsville is co-sponsoring a measure to return more of those dollars to TVA counties.