Page:United States Statutes at Large Volume 54 Part 1.djvu/660

 PUBLIC LAWS-CH. 432-JUNE 26, 1940 No exclusion be- cause of race, etc. Tennessee Valley Authority Act of 1933, amendment. 48 Stat. 66. 16 U.S. c.. 8311. Payments to certain States and counties therein. "Gross proceeds" defined. Payments in lieu of taxation. Apportionment of payment among States. Provisos. Minimum annual Eayments to each State. Minimum to be not less than $10,000. Payments to coun- ties; deduction from payment otherwise due State. section, and the limitations and conditions on the expenditure of such funds are hereby waived to the extent necessary to accomplish the purposes of this section: Provided further, That no person shall be excluded from the training program authorized by this section on account of race, color, or creed. SEO. 39. Section 13 of the Tennessee Valley Authority Act of 1933 is hereby amended to read as follows: "Smo. 13. In order to render financial assistance to those States and local governments in which the power operations of the Cor- poration are carried on and in which the Corporation has acquired properties previously subject to State and local taxation the board is authorized and directed to pay to said States, and the counties therein, for each fiscal year, beginning July 1, 1940, the following percentages of the gross proceeds derived from the sale of power by the Corporation for the preceding fiscal year as hereinafter provided, together with such additional amounts as may be payable pursuant to the provisions hereinafter set forth, said payments to constitute a charge against the power operations of the Corporation: For the fiscal year (beginning July 1) 1940, 10 percentum; 1941, 9 per centum; 1942, 8 per centumn; 1943, 7/2 per centum; 1944, 7 per centum; 1945, 6/2 per centum; 1946, 6 per centum; 1947, 51/2 per centum; 1948 and each fiscal year thereafter, 5 per centum. 'Gross proceeds', as used in this section, is defined as the total gross proceeds derived by the Corporation from the sale of power for the preceding fiscal year, excluding power used by the Corporation or sold or delivered to any other department or agency of the Government of the United States for any purpose other than the resale thereof. The payments herein authorized are in lieu of taxation, and the Corporation, its property, franchises and income, are hereby expressly exempted from taxation in any manner or form by any State, county, municipality, or any subdivision or district thereof. "The payment for each fiscal year shall be apportioned among said States in the following manner: One-half of said payment shall be apportioned by paying to each State the percentage thereof which the gross proceeds of the power sales by the Corporation within said State during the preceding fiscal year bears to the total gross proceeds from all power sales by the Corporation during the preced- ing fiscal year; the remaining one-half of said payment shall be apportioned by paying to each State the percentage thereof which the book value of the power property held by the Corporation within said State at the end of the preceding fiscal year bears to the total book value of all such property held by the Corporation on the same date. The book value of power property shall include that portion of the investment allocated or estimated to be allocable to power: Provided, That the minimum annual payment to each State (including payments to counties therein) shall not be less than an amount equal to the two-year average of the State and local ad valorem property taxes levied against power property purchased and operated by the Corporation in said State and against that portion of reservoir lands related to dams constructed by or on behalf of the United States Government and held or operated by the Corporation and allocated or estimated to be allocable to power. The said two- year average shall be calculated for the last two tax years durin which said property was privately owned and operated or said land was privately owned: Provided further, That the minimum annual payment to each State in which the Corporation owns and operates power property (including payments to counties therein) shall not be less than $10,000 in any case: Provided further, That the corpora- tion shall pay directly to the respective counties the two-year avera of county ad valorem property taxes (including taxes levied by 626 [54 STAT.

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