TVA Update

The TVA in-lieu-of-tax bill (HB 114/SB 9) has been gaining momentum as we close in on the last few days of the General Session. It passed the House with an 82-3 vote Thursday, March 15. The bill arrived in the Senate Friday, and it was sent to the Senate Appropriations & Revenue Committee on Monday, March 19. 

The TVA in-lieu-of-tax bills will give 39 Kentucky counties funds for economic development each year. That money would come from a portion of tax that the TVA pays the state. That portion of money would be redirected back to the 39 counties that are powered by the Tennessee Valley Authority (TVA) and used for job-attracting activities like preparing or acquiring land for industrial sites or building or upgrading water, sewer and other infrastructure.  

Signs indicate that this legislation will be successful in this session. Sen. Stan Humphries of Cadiz says that the TVA bill is in the revenue portion of the governor's budget. The overwhelming support shown by the House vote is also a great sign. Rep. Kenny Imes of Murray says that this is the first time in a long time that western Kentucky legislators have worked together as a united front, and it's paying off. 

Kentucky 1st District Congressman James Comer says the TVA in-lieu-of-tax bill is a prime opportunity for western Kentucky.

“That’s a great piece of legislation. I’m glad that bill is advancing now,” Comer said. “It’s going to create a lot of opportunities for counties in the TVA operation area.” (Comer quote from Murray Ledger article by John Wright)