CANEY FORK ELECTRIC COOPERATIVE., INC., ET AL. v. TENNESSEE STATE BOARD OF EQUALIZATION - Articles

All Content


Posted by: Landry Butler on Sep 26, 2016

Court: TN Court of Appeals

Attorneys 1:

J. Richard Lodge, Jr. and Robert C. Guth, Nashville, Tennessee, for the appellants, Caney Fork Electric Cooperative Inc., Pickwick Electric Cooperative, Powell Valley Electric Cooperative, Upper Cumberland Electric Membership Corporation, and Volunteer Energy Cooperative.

Attorneys 2:

Herbert H. Slatery, III, Attorney General and Reporter; Andre´e Sophia Blumstein, Solicitor General; and Mary Ellen Knack, Senior Counsel; for appellee, Tennessee State Board of Equalization.

Leslie Clark Ledbetter, Clarkrange, Tennessee, for appellee, Fentress County, Tennessee.

Robert T. Lee, Mt. Juliet, Tennessee, for the appellees, McNairy County and Smith County.

Judge(s): BENNETT

The Tennessee Attorney General opined that a tax exemption in favor of electric cooperatives found at Tenn. Code Ann. § 65-25-122(a) violates Article II, Section 28 of the Tennessee Constitution. The Board of Equalization began proceedings to recalculate the taxes of the electric cooperatives. Several electric cooperatives objected and maintained that the exemption under Tenn. Code Ann. § 65-25-122(a) was valid. The Board recalculated their taxes anyway. The electric cooperatives appealed. Although the Board of Equalization cannot rule on the constitutionality of the statute, we can. We find that Tenn. Code Ann. § 65-25-122(a) violates Article II, Section 28 of the Tennessee Constitution.