OAK RIDGE, Tenn. – The U.S. Department of Energy today approved a significant increase in the calculation used to determine payment in lieu of taxes for the City of Oak Ridge, and Anderson and Roane counties. The increase will be effective immediately and will result in increased payments to these local governments during this fiscal year.

The per-acre increase goes from $4,610 to $5,327 -- a 15 percent increase for payments made in lieu of property taxes for DOE’s 35,242 acre Oak Ridge Reservation. With this change, the payment in lieu of taxes will go from $1.96 million to $2.26 million for payments due in FY 2001. The increase marks the first change in this calculation since early 1998.

The increase to $5,327 per acre is based on a State of Tennessee-mandated reappraisal of property in both Anderson and Roane Counties that resulted in a higher valuation of property and a State-mandated reduction in property tax rates. The increase was made at the request of officials of all three local governments and was strongly supported by U.S. Congressman Zach Wamp.

Ed Cumesty, Acting Manager for Oak Ridge Offices, said, "We are pleased that this increase has been approved. We believe it is a matter of fairness and equity in our relationship with local governments. Our goal is to continue to be a good neighbor to the local governments that play such an important role in our success."

-DOE-

R-01-009