2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 9 - PAYMENTS IN LIEU OF TAXES (§§ 67-9-101 — 67-9-201) › Part 1 - TENNESSEE VALLEY AUTHORITY TENNESSEE STATE REVENUE SHARING ACT (§§ 67-9-101 — 67-9-103) › Section 67-9-102 - Proration of payments to counties and municipalities - Eligibility of impacted areas - Phasing out of payments

(a)
(1)
Payments provided in §
67-9-101(a)(2)
shall be made in accordance with the following formula:
(A)
Thirty percent (30%) of the available amount shall be paid to counties in accordance with the percentage that the population of each county bears to the total state population;
(B)
Thirty percent (30%) of the available amount shall be paid to counties in accordance with the percentage that the total acreage of each county bears to the total acreage of the state;
(C)
Ten percent (10%) of the available amount shall be paid to each county containing land owned by the Tennessee Valley authority in accordance with the percentage that Tennessee Valley authority owned land in that county bears to all Tennessee Valley authority owned land in Tennessee; and
(D)
Thirty percent (30%) of the available amount shall be paid to incorporated municipalities in accordance with the percentage that the population of that municipality bears to the population of all incorporated municipalities in Tennessee.
(2)
For the purpose of making calculations in accordance with the formula in subdivision (a)(1), only the population, acreage and land contained within the Tennessee Valley authority electrical power service area shall be used to make such calculations; provided, that population, acreage and land that are not contained within the Tennessee Valley authority electrical power service area on March 8, 1990, shall continue to be utilized in making such calculations. It is the legislative intent that this subdivision (a)(2) shall apply prospectively only.
(3)
Before distributing to the counties and incorporated municipalities any of the payments mentioned in this section, the commissioner of finance and administration shall make a monthly deduction of four thousand four hundred sixty-two dollars ($4,462) from each payment provided in subdivisions (a)(1)(A) and (D), which shall be appropriated and transmitted for use by the advisory commission on intergovernmental relations as provided by title 4, chapter 10, part 1.
(4)
Each local government shall receive in such payments an amount not less than the amount of such funds received by such local government from the state during the fiscal year preceding July 1, 1978, as a portion of the Tennessee Valley authority payment in lieu of taxes to the state.
(b)
(1)
The commissioner of revenue shall allocate the funds apportioned by §
67-9-101(a)(3)
among the counties and municipalities, lying wholly or in part, within the impacted local governing areas designated by the Tennessee Valley authority; provided, that the total amount allocated, pursuant to this subsection (b), to any county and the municipalities within such county shall not exceed ten percent (10%) of the total impact funds apportioned by §
67-9-101(a)(3)
; and provided further, that the weighted population formula presently being used for allocation among counties and municipalities, of those funds apportioned by §
67-9-101(a)(3)
, shall be continued.
(2)
Such payments to impacted areas shall be made during the period of construction activity and, based on the last year of entitlement according to §
67-9-101(a)(3)
, for a period of three (3) full fiscal years after completion or cessation of such construction activity. Such payments shall be phased out over the three-year period by decreasing the payment made in the last year of activity by an additional twenty-five percent (25%) each year, being seventy-five percent (75%) during the first year after the last year of entitlement, fifty percent (50%) during the second year after the last year of entitlement, and twenty-five percent (25%) during the third year after the last year of entitlement.
(3)
(A)
If, in any fiscal year, there are funds remaining after the allocation provided for in subdivisions (b)(1) and (2), or there are no impacted areas, any remaining funds apportioned by §
67-9-101(a)(3)
in any fiscal year, not to exceed thirty percent (30%) of the total of such impact funds, shall be allocated by the commissioner of revenue to the University of Tennessee for use in operating the county technical assistance service in its institute for public service. Such funds shall be used for studies and research in county government, publications, education, consultative and field services to counties in problems relating to fiscal administration, accounting, tax assessment and collection, economic development, environmental concerns, conservation, improvements and public works, and in any and all matters relating to county governments. If, in any fiscal year, the amount allocated to the University of Tennessee under this subdivision (b)(3)(A) for use in operating the county technical assistance service falls below thirty percent (30%) of the total of such impact funds, then the University of Tennessee shall receive, from the funds to be paid to counties under subdivision (a)(1)(A), an amount sufficient to raise the payment to the University of Tennessee to an amount equal to thirty percent (30%) of the total of the impact funds.
(B)
If, in any year, there are funds remaining after the allocation provided for in subdivisions (b)(1) and (2), or there are no impacted areas and after any allocation to the University of Tennessee as provided for in this subdivision (b)(3), then any remaining funds, not to exceed twenty percent (20%) of the total of such impact funds per year, shall be allocated by the commissioner of revenue to the Tennessee advisory commission on intergovernmental relations. The Tennessee advisory commission on intergovernmental relations shall utilize such funds for an annual inventory of statewide public infrastructure needs pursuant to §
4-10-109
. In order to accomplish this inventory, the commission shall annually contract for the services of the state's nine (9) development districts or an agency or entity of state or local government or higher education and shall compensate each of the development districts or the agency or entity of state or local government or higher education at the rate of five cents (5¢) per capita or fifty thousand dollars ($50,000), whichever is greater. The per capita amount shall be based upon the population estimates reported by the United States department of commerce, United States bureau of the census or its federal functional equivalent. If, in any fiscal year, the amount allocated to the Tennessee advisory commission on intergovernmental relations under this subdivision (b)(3)(B) for a public infrastructure inventory falls below twenty percent (20%) of the total of such impact funds, then the Tennessee advisory commission on intergovernmental relations shall receive, from the funds to be paid to the counties and municipalities under subdivision (a)(1), an amount sufficient to raise the payment to the Tennessee advisory commission on intergovernmental relations for this purpose to an amount equal to twenty percent (20%) of the total of the impact funds.
(C)
If, in any year, there are funds remaining after the allocation provided for in this subdivision (b)(3) and subdivisions (b)(1) and (2), then any remaining funds, not to exceed twenty percent (20%) of the total of such impact funds per year, shall be allocated by the commissioner of revenue to the Tennessee advisory commission on intergovernmental relations. Such funds shall be used for studies and research pertaining to state-local fiscal relations, including state-shared taxes, education finance, the property tax, fiscal impacts of policy changes, and issues related to changing federalism, including federal devolution, block grants, preemptions, mandates, and the Tenth Amendment to the Constitution of the United States. If, in any fiscal year, the amount allocated to the Tennessee advisory commission on intergovernmental relations under this subdivision (b)(3)(C) falls below twenty percent (20%) of the total of such impact funds, then the Tennessee advisory commission on intergovernmental relations shall receive, from the funds to be paid to the counties and municipalities under subdivision (a)(1), an amount sufficient to raise the payment to the Tennessee advisory commission on intergovernmental relations to an amount equal to twenty percent (20%) of the total of the impact funds.
(D)
If, in any fiscal year, there are funds remaining after the allocation provided for in this subdivision (b)(3) and subdivisions (b)(1) and (2), then any remaining funds shall be allocated to the Tennessee central economic authority created by §
64-5-101
, which has acquired a former nuclear site from the Tennessee valley authority. The commissioner of revenue shall determine each fiscal year the funds remaining after all prior authorized distributions have been made and allocate those funds to the Tennessee central economic authority. The funds shall be used to construct roads, install water and wastewater facilities, and provide other public infrastructure to assist in the development of the sites and other land as regional industrial/business and job incubator facilities consistent with regional development plans. If, in any fiscal year, the total amount of funds allocated is less than the total amount of funds available, any remaining funds shall be distributed in the same manner as the funds in subsection (a). If, in any fiscal year beginning with the 2008-2009 fiscal year and ending in the 2023-2024 fiscal year, the amount allocated to the Tennessee central economic authority under this subdivision (b)(3)(D) falls below ten percent (10%) of the total of the impact funds, then the Tennessee central economic authority shall receive, from the funds paid to or retained by this state under §
67-9-101(a)(1)
, an amount sufficient to raise the payment to the Tennessee central economic authority to an amount equal to ten percent (10%) of the total of the impact funds, to the extent that the payment can be made without reducing the amount paid to or retained by this state under §
67-9-101(a)(1)
below the amount paid to or retained by the state in fiscal year 2007-2008.
(E)
If, in any fiscal year, the total amount of funds allocated is less than the total amount of funds available, any remaining funds shall be distributed in the same manner as the funds in subsection (a).
(4)
Funds allocated pursuant to subdivisions (a)(3) and (b)(3) shall not be subject to reversion, and any unspent funds shall be carried forward.
Amended by 2018 Tenn. Acts, ch. 890,s 1, eff. 5/3/2018.
Amended by 2014 Tenn. Acts, ch. 955,s 1, eff. 5/19/2014.
Acts 1947, ch. 31, § 2; C. Supp. 1950, § 1540.3 (Williams, § 1811.33); Acts 1972, ch. 758, § 1; 1977, ch. 181, § 1; T.C.A. (orig. ed.), § 67-2402; Acts 1981, ch. 22, § 1; T.C.A., § 67-24-102; Acts 1987, ch. 186, § 1; 1990, ch. 634, § 1; 1990, ch. 638, §§ 1, 2; 1990, ch. 640, §§ 2, 3; 1996, ch. 817, § 3; 1997, ch. 241, §§ 1-3; 1999, ch. 326, §§ 1, 2; 2000, ch. 672, § 1; 2002, ch. 865, § 1; 2008, ch. 1158, § 1; 2008, ch. 1185, §§ 1-3; 2009, ch. 530, § 100.