In March, Southern Public Power District distributed $1.47 million of in-lieu-of-tax payments to eight counties in south central Nebraska served by the District.
“These payments assist governing bodies to provide basic services to those living in the counties we serve.” said SPPD CEO Neal Niedfeldt. “These services are essential in maintaining the life and vitality of our local areas, and are another benefit of our public power system.”
In-lieu-of-tax payments compensate for local tax revenues lost because of the not-for-profit, tax exempt status of Nebraska’s public power industry. The payments are based on 5 percent of SPPD’s gross revenues from the previous year’s retail electricity sales in incorporated cities and towns. County treasurers then distribute the funds to local governing entities, school districts and villages to fund services.
In addition to in-lieu-of-tax payments, SPPD also pays general sales taxes, gasoline taxes, motor vehicle license fees and permit fees like any other business.
The payments made to each county were as follows:
Adams County = $81,197.15
Clay County = $11,636.93
Kearney County = $151,188.19
Franklin County = $20,442.69
Hall County = $432,990.31
Hamilton County = $486,906.65
Merrick County = $187,304.36
Phelps County = $100,797.21
In all, a total of $1,472,463.49 was distributed with the payments in March.