TVA will be implementing a new fee system for commercial recreation operations using the utility's shoreline property.
The Tennessee Valley Authority will be implementing a new fee system for commercial recreation operations using the utility's shoreline property. TVA officials say about 200 marinas and campgrounds will be affected, starting January 2013.
TVA explains, the fee is comparable to a lease, not a tax.
"It is a new fee structure for commercial operators who are using public land, public property for their business where they make a profit," said TVA Community Relations Officer Travis Brickey.
Brickey says the system has been in place for many years, but was inconsistent. Fees were based on the date an operation first started using TVA land, some dating back more than 50 years.
While some operations were paying high fees, others were paying little, or nothing at all.
Brickey says the new system will create a level playing field for all.
"Some of them will see an increase, some of them will be in right where they are now, and some of them may even see a decrease. It just kind of depends on where they are now," he said.
Brickey explained businesses will have two options under the new system. They can either pay a fair market value, or a percentage of revenues.
Ned Bass owns two marinas on TVA property. He subleases one from Union County, and leases the other directly from TVA.
He argues for consistency.
"When we came in three years ago, the problem was everyone was on a different
page. Where we had to factor our 5% going back to the government, there
[were] other marinas that had a flat fee of a thousand dollars a year," he said.
"And when you're trying to play Apples for Apples you can't do it."
Bass says, the new system makes sense.
"It'll be a very good, level playing field for everybody to set their prices."
There are additional operations along shoreline that will not pay a TVA fee. Those include land used by cities and counties that offer free recreational opportunities. Brickey adds, eleven TVA-owned-and-operated campgrounds will also be exempt.
Under the current system, TVA collects approximately $500,000 annually from the fees. Officials have not yet determined how much will be collected in the future.