City of Tullahoma v. Coffee County, Tennessee

With all due respect, I do not believe that Congress ever intended the result reached here. As I read the 1940 amendment to Section 13, no obligation was imposed upon TVA to provide for tax equivalent payments in its contracts with municipalities, but if such payments are provided they must be “conditioned upon a proper distribution by the municipality of any amounts collected by it in lieu of State or county taxes upon any such distribution system or property * *

The majority’s holding in this case permits a municipality to include in the rates, which it charges to users of electricity, sums…