Morrow’s TVA bill passes House

By Staff
Jonathan Willis
MONTGOMERY- Rep. Johnny Mack Morrow announced Monday that the House of Representatives passed a bill that will keep TVA revenue in North Alabama.
The bill now goes to the governor.
The bill would repeal a law that allows 5 percent of the money that TVA pays instead of taxes to be distributed to dry counties.
Since it is a federal agency, TVA is not required to pay taxes to state and local governments. The TVA revenue formula was set in 1978 as a compromise between TVA-area lawmakers, legislators representing dry counties and the late Gov. George Wallace. Before then, all TVA in-lieu-of-tax revenue went to the state's general fund.
In comparison, local taxes paid by power companies in all other areas remain local.
The Tennessee Valley Caucus is a group of 20 members from the House of Representatives who represent North Alabama counties. Formed in 2005, the group meets regularly during the legislative session to address issues affecting the Tennessee Valley area such as TVA in-lieu-of funds and protecting the Tennessee River from interbasin transfers.