CODE OF VIRGINIA

APPORTIONMENT OF PAYMENTS RECEIVED FROM TENNESSEE VALLEY AUTHORITY IN LIEU OF
TAXES (§ 58.1-3406)

A. Notwithstanding any other provision of law, all of the total payments
received annually by the Commonwealth from the Tennessee Valley Authority in
lieu of taxes shall be apportioned among the cities and counties in which the
Tennessee Valley Authority owns property or where Tennessee Valley Authority
power is distributed.  The Department of Accounts is hereby authorized and
directed to make annual payments to the localities in the following manner:
three-fourths of such payments shall be apportioned by paying to each locality
its percentage of total sales in Virginia by distributors of Tennessee Valley
Authority power during the preceding fiscal year as determined pursuant to
subsection B of this section; the remaining one-fourth of such payment shall be
apportioned by paying to each locality its percentage of the net book value of
the power property held in Virginia by the Tennessee Valley Authority as
determined pursuant to subsection C of this section.

B. The determination of each locality’s percentage of sales in Virginia by
distributors of Tennessee Valley Authority power shall be based upon reports
filed by the distributors, which reports shall be filed with the Department of
Taxation by September 1 of each year. Such reports shall contain the number of
kilowatt hours of power sold by the distributor in each Virginia locality during
the preceding year.

C. The determination of each locality’s percentage of the net book value
of the power property held in Virginia by the Tennessee Valley Authority shall
be based upon the most recent figures provided by the Tennessee Valley Authority
to the Department of Taxation.

HISTORY: Code 1950, § 58-16.2:2; 1982, c. 413; 1984, cc. 531, 675; 1990, c. 70.