respective losses suffered by the particular counties of the State affected by the acquisition by Tennessee Valley Authority of farm lands and the dams, transmission lines, and steam-generating plants formerly owned by private power companies. Section 8, of article 11, of the Constitution of Tennessee, provides: Mr. JENNINGS. And also the trustee of Monroe County. The CHAIRMAN. All right, you can put them all in the record in connection with your testimony. (The telegrams, letters, etc., referred to by Mr. Jennings, are as follows:) JOHN JENNINGS, Jr., M. C.: MARYVILLE, TENN., February 19, 1949. Taxable electrical properties in Blount County taken over by Tennessee Valley Authority, $735,240; value of lands to be flooded by Coulter Shoals in Blount County, estimated $1,000,000 or more; bonded indebtedness, Blount County, $1,893,000; present tax rate, $2.10 per $100. GEO. D. ROBERTS, Judge. COUNTY COURT OF MCMINN COUNTY, Hon. JOHN JENNINGS, Jr., Washington, D. C. DEAR CONGRESSMAN: Replying to your letter of February 14, 1940, regarding statement I made to the Military Affairs Committee: Total assessment for McMinn County for 1939_ Assessment of property acquired by Tennessee Valley Authority 1939___. Assessment will be for 1940 about. Total taxes to be paid in McMinn County, 1939_ Taxes paid on property acquired by Tennessee Valley Authority, 1939_. Loss on taxes acquired by Tennessee Valley Authority. Total loss in McMinn County for all property- $8, 764, 848. 00 1, 758, 890. 00 7, 005, 958. 00 199, 961. 04 39, 034. 24 39, 034. 24 3,000.00 42, 034. 24 To replace our taxes Our tax rate for 1939 is $2.35 per $100 assessment. the rate for 1940 will have to be about $2.90, an increase of about 55 cents. Our city tax rate is $3.50. Our county bonded indebtedness is $747,000. Glad to hear from you, and any time I can be of service to you, just let me hear from you. With best wishes, I am, Sincerely, your friend, ERNEST GUFFEY. CAMPBELL COUNTY, Hon. JOHN JENNINGS, Jr., Washington, D. C. Jacksboro, Tenn., February 16, 1940. DEAR JUDGE: In reply to your letter of February 14, 1940, relative to tax losses sustained by this county as the result of Tennessee Valley Authority's acquisition of property, let me say: First. The Tennessee Power Co., which served La Follette and many other communities in this county, recently made its last payment for taxes in the amount of $20,728.68, being the sum due for 1939 taxes. In round numbers, therefore, the loss to the county in taxes as a result of this property becoming nontaxable will be $20,000 per year. In the event the Kentucky-Tennessee Power Co. at Jellico becomes tax-free, which now seems probable, there will be another $2,600 annual loss in taxes. Second. At the request of the late Congressman from this congressional district, Campbell County prepared an accurate statement of the loss in taxes 206121-40-34 sustained by Campbell County as the result of land purchases made for the Government by Tennessee Valley Authority. This work was in charge of the late A. J. Agee, when he was county attorney, and was submitted to the Hon. J. Will Taylor. A search of our records has not brought this statement to light. However, Capt. Winston Baird, our clerk and master, has done much work along this line and a statement found in his office shows the purchase of these lands removed from taxation property assessed at $600,000. It would be impossible within the short time before the meeting of the committee for these figures to be thoroughly checked. I am, therefore, submitting these figures as the best available. At this rate the acquisition of lands by the United States of America in this county has resulted in a tax loss to the county of approximately $22,500 each year. As you know, property in this county is assessed unusually low and our present tax rate of $3.88 is accordingly abnormally high. Third. It may, therefore, be seen that the total yearly loss in county taxes, as the result of property being removed from taxation, is from $40,000 to $45,000. Fourth. All property in Campbell County is assessed at $5,768,127. A 75cent increase in taxes will therefore be necessary to make up this difference. Considering our present rate of taxation, such an increase is unthinkable, and has not been made; but it is doubtful that the fiscal affairs of the county can be kept in order without some sort of relief from the situation. Fifth. The bonded indebtedness of Campbell County is $1,443,000, with a $250,000 bond issue in the process of being made to fund outstanding warrants. The $1,443,000 obligation was made by the county when all the foregoing property was subject to taxation. I regret very much that I cannot say personally that the figures furnished me by Captain Baird are correct. But as you know, Captain Baird's figures are entitled to as much, if not more, credit as my own. If any of Mr. Taylor's files are available to you, it is possible that you can find the data submitted to him. Thanking you for the interest you are taking in the matter, and assuring you that you may count on my cooperation, I am, Yours very respectfully, J. G. WOODWARD, County Judge. Hon. JOHN JENNINGS, Jr., KNOXVILLE, TENN., February 17, 1940. House Office Building, Washington, D. C. DEAR JUDGE JENNINGS: Am in receipt of your letter of February 14, 1940, in which you ask me to make a statement of the loss, and probable loss, of taxes by Knox County on account of the acquisition by the Tennessee Valley Authority of electrical properties in Knox County, and the loss in taxes which the county will sustain as a result of the construction of Coulter Shoals Dam. You further ask me to give you the amount of the present bonded indebtedness of Knox County. I am enclosing herewith a statement which is furnished to me by Tennessee Valley Authority which shows the estimated assessed valuation of electric utility property purchased and retained by the Tennessee Valley Authority in Knox County, Tenn., for the year 1938, $1,344,763. County tax levy (1938), $19,499, which amount does not include the $0.08 per $100 State levy. Also a tentative amount of taxes lost by the flooding, incident to the building of Coulter Shoals Reservoir is $3,052, the same being county tax levy on approximately $209,027 for the year 1938. This does not appear so formidable as to the Coulter Shoals flooding of lands as I would suppose. The estimate is merely tentative. A further allocation of taxes, assuming that 38.1 percent of the cost of the dam and reservoir, is allocated to power. The former tax lavy on this portion of the land purchase in Knox County would equal approximately $1,163. The total bonded indebtedness of Knox County to date is $3,971,000. I appreciate your efforts on behalf of our county and other counties in Tennessee with regard to your approval before the committee of the NorrisSparkman bill. I hope the enclosed information meets with your request. Yours truly, S. O. HOUSTON, County Judge. Tax estimates, Knox County, Tenn. Estimated assessed valuation of electric utility property purchased and retained by the Tennessee Valley Authority in Knox County, Tenn., for the year 1938 County tax levy (1938). $1, 344, 763 119, 499 1 State levy of $0.08 per $100 not included. Preliminary estimates on the basis of available information regarding probable land acquisition in Knox County for the Coulter Shoals Reservoir indicate a purchase of land on which the present assessed value is approximately $209,027. The county tax levy on this valuation in 1938 was $3,052. If we assume an allocation to power of 38.1 percent of the cost of the dam and reservoir, the former tax levy on this portion of the land purchase in Knox County would equal approximately $1,163. MAYNARDVILLE, TENN., Hon. JOHN JENNINGS, Jr., Washington, D. C. DEAR CONGRESSMAN: The information about which you wrote me was gotten up by the county officials of Union County and was sent to the late Congressman J. Will Taylor. As I recall, the Tennessee Valley Authority acquired about 42 percent of our assessed valuation, and the tax rate has been increased from $1.30 to $2.45. There was no transmission lines in Union County at the time of the beginning of the operations of the Tennessee Valley Authority nor at the time of the acquisition of lands for the construction of Cove Creek Dam. They did take $293,000 worth of our roads and bridges, but they paid for $141,000 of them, but never gave us anything to take the place of the taxes we were obtaining off of the lands acquired by them. The $141,000 was simply paid for concrete and steel bridges, and a small part of the cost of roads which had been inundated by backwaters. As a matter of fact, the $141,000 was for fiscal properties that were not taxable, but belonged to the county. We received no relief or compensation whatever for the taking of land from which we collected ad valorem taxes. Justice would require that they pay us each year the amount of taxes that would be derived from the land acquired by them. Whether we can get it is another question. I will have a talk with the county judge and trustee and see if I can get any further information for you and if I can I will send it to you. I hope that you will not have any opposition for reelection, and anything that I can do for you, do not hesitate to call on me. Your friend, W. P. MONROE. Schedule for tax levy as assessed for the year 1939 Total tax.. Utility valuation, inside corporations, $206,847.69, at $2.72 per $100_ Utility valuation, outside corporations, $1,859,926.99, at $2.77 per $100. Loss of tax___ Total_ Total valuation, $7,099,714.68. Loss of Tennessee Electric Power's valuations, $920,360. 103, 076. 52 5, 626. 25 51, 519. 97 199, 876. 81 25, 447. 35 174, 429. 46 Schedule showing the effect on 1940 tax levy, to replace lost tax Utility assessment valuations, inside corporations, $113,607.69, at $3.14_ 3, 567. 26 Utility assessment valuations, outside corporations, $1,032,806.99, at $3.19_ 32, 946. 54 Total 200, 382.82 Increase of $0.42 per hundred is shown for 1940 tax rate to replace loss taxes. Fifteen percent increase in taxes. Net bonded county department, $739,672. PEACE & SLOAN, Madisonville, Tenn., February 17, 1940. Hon. JOHN JENNINGS, Jr., Member of Congress, Washington, D. C. DEAR CONGRESSMAN: Please excuse my delay in answering your letter regarding taxes of Monroe County, but we were forced to have the trustee to work this out for us. We are enclosing herewith statement of trustee, which you will notice shows that we have lost $25,447.35 due to the Tennessee Electric Power Co. sale. This will mean a 42-cents-per-hundred rate increase in our assessment, or approximately 15 percent. The net bonded indebtedness of Monroe County is $739,672. The loss of the Tennessee Electric Power Co. taxes is not all the loss that Monroe County has sustained, but due to the Government purchasing land for the Cherokee National Forest we have heretofore lost approximately 15 percent of the taxes collected, and this loss is increasing daily, due to purchases by the Government. The county has heretofore gone to the expense of building roads in the vicinity of the property that the Government has purchased for the Cherokee National Forest. The loss of the taxes from the Tennessee Electric Power Co. work a hardship upon our farming population. We are of the opinion that there are not more than 1,000 users of electricity in Monroe County. As you know, it is a rural county and the farmers are not so situated as to obtain electric power. The increase in taxation strikes directly at the farmer, although, as heretofore stated, he receives no benefit. We trust that you will exert every effort in your power to see that this tax is replaced by some equitable method. Very truly yours, PEACE & SLOAN, By O. T. SLOAN. The CHAIRMAN. Gentlemen, Mr. John Neal, of Knoxville, representing the County Judges' Association of the State of Tennessee is here. The chairman knows it is late and Mr. Neal has said he would be glad to put his statement in writing and forward it to the clerk of the committee. Mr. NEAL. Yes; I shall appreciate the opportunity of doing that. I will get it in within the next 2 days. The CHAIRMAN. It was my intention after hearing these gentlemen to close these hearings, and if there is no objection that will be the order. Off the record. (Discussion off the record.) The CHAIRMAN. If there is nothing further, the committee is adjourned until further call of the Chair. (Whereupon, at 12 o'clock noon, the hearing was adjourned.) |