7-52-606 - Tax payments Payments in lieu of taxes. - Tennessee Statutes

7-52-606. Tax payments Payments in lieu of taxes.

(a)  A municipal electric system providing any of the services authorized by this part shall make tax equivalent payments with respect to such services in the manner established for electric systems under part 3 of this chapter; provided, that such payments shall not include amounts based on net system revenues as provided in § 7-52-304(1)(B). For purposes of the calculation of such tax equivalent payments only, the system, plant, and equipment used to provide such services shall be considered an electric plant, and the revenues received from such services shall be considered operating revenues. The amount payable pursuant to this subsection (a) shall not exceed the amount that would otherwise be due from a municipality were it a private provider of such services paying ad valorem taxes.

(b)  In addition to the requirement of subsection (a), and notwithstanding any other provision of law to the contrary, a division of the municipal electric system providing the cable services, internet services, two-way video transmission or video programming services authorized by this part, is subject to payment to the appropriate units of government of an amount in lieu of the following taxes on that part of its revenues, plant and facilities dedicated or allocated to those services described in § 7-52-601(a), to the same extent as if it were a private provider of such services:

     (1)  Excise and franchise tax law under title 67, chapter 4, parts 20 and 21;

     (2)  Sales tax law under title 67, chapter 6; and

     (3)  Local privilege tax law under title 67, chapter 4, part 7.

[Acts 1999, ch. 481, § 1.]