Middle Tennessee Electric’s ad valorem tax payments increase to help local communities  

As a not-for-profit electric cooperative, Middle Tennessee Electric (MTE) is exempt from certain types of taxes, but it is still one of the largest taxpayers to local governments through the ad valorem tax. 

The Latin phrase ad valorem means “according to value.” MTE’s infrastructure, including buildings, substations, transformers, poles and lines, must be assessed annually to determine the amount to be paid. Local governments then use the revenue generated from the ad valorem tax for operations and programs to help meet the needs of the community’s residents.  

This year, MTE will pay the greatest amount of ad valorem taxes in its history, more than $9.3 million total to local governments in its service area. The individual payments range from several thousand to millions of dollars, depending on the total amount of assessed property located in a particular county and to the cities within those counties.   

“Middle Tennessee Electric’s overarching mission is to make the lives of our members better, and this financial commitment allows us to further that mission as a responsible corporate citizen in the communities we serve,” said Chris Jones, MTE President/CEO.  

Counties paid ad valorem taxes by MTE for the 2021 tax year include Cannon, DeKalb, Maury, Rutherford, Smith, Trousdale, Williamson and Wilson.  

“This is a process we go through annually, and it is tightly defined by state law,” Jones said. “As our electric system grows, our value and tax bills increase, directly benefiting Williamson County. We are proud to be able to contribute in this way to the communities we serve here.