State lawmakers in Kentucky recently discussed what's next for the Tennessee Valley Authority's in-lieu-of tax, which began passing a proposed state budget through legislature in March.
39 counties in Kentucky have eligibility to participate in this development program as part of the Kentucky TVA region.
Department of Local Government Commissioner Sandra Dunahoo said in a recent meeting in Paducah that these funds may be shared among Kentucky counties for development projects.
"It’s not the intent of the Department for Local Government to dictate how these dollars should be spent in these communities because communities know best what their needs are," Dunahoo said. "So if the opportunity exists for counties to partner, that could be a tremendous opportunity to further leverage their funding."
The deadline to fill out paperwork and opt-in to the program is November 9th. Dunahoo said that these funds would grow each year if all counties participate.
"The first year, a two million dollar investment in this program would... equate to fifty-one thousand two hundred and eighty two dollars and five cents for each of the thirty-nine participating counties," Dunahoo said.
Counties able to participate include Adair, Allen, Ballard, Barren, Bell, Butler, Caldwell, Calloway, Carlisle, Christian, Clinton, Cumberland, Edmonson, Fulton, Graves, Grayson, Harlan, Hart, Henderson, Hickman, Livingston, Logan, Lyon, Marshall, McCracken, McCreary, Metcalfe, Monroe, Muhlenberg, Ohio, Russell, Simpson, Todd, Trigg, Union, Warren, Wayne, Webster and Whitley counties.
The TVA is a federal entity and doesn’t pay property taxes on assets in its 39 Kentucky counties. It instead pays an in-lieu-of tax to the state, which is five percent of its gross sales.