North Georgia Electric Membership Corporation v. City of Calhoun, Georgia, a Municipal Corporation

OAKES, Senior Circuit Judge:

The North Georgia Electric Membership Corporation (“North Georgia”), a nonprofit rural collective which distributes electricity produced by the Tennessee Valley Authority (“TVA”) to a large portion of northern Georgia, has refused to pay a franchise fee (the “Tax”) imposed in 1987 by the City of Calhoun, Georgia (the “City” or “Calhoun”). The City has attempted to levy its 4% Tax on North Georgia’s gross sales of electricity within the City limits, which in 1988 exceeded $4.7 million. North Georgia has roughly 800 customers within the City of Calhoun, all on land…