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CITY OF SHELBYVILLE v. STATE

415 S.W.2d 139 (1967)

CITY OF SHELBYVILLE, Appellant, v. STATE ex rel. BEDFORD COUNTY, Appellee.

Supreme Court of Tennessee.

April 26, 1967.

Attorney(s) appearing for the Case

John C. Shofner, Shelbyville, and Edwin F. Hunt, Nashville, for appellant.

L.S. Haugland, Shelbyville, for appellee.

CHATTIN, Justice.

OPINION

The City of Shelbyville acquired an electric distribution system in 1939 and has owned it since. Under a contract with TVA the City purchases wholesale electric power from TVA and uses the power for its own purposes and also distributes it to its customers in the City and Bedford County.

Being owned by the City, the properties of the utility are tax-exempt under T.C.A. Section 67-502(1). Prior to 1939, the utility was privately...

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