Fontana Village challenged Graham County’s attempt to collect $80,000 in allegedly owed property taxes. Attorneys argued the village leases property from the TVA, which makes an annual payment in lieu of taxes. The payment was set up as an act of Congress. Last year, it was over $841,000. It was further argued that the property taxes that have been paid on buildings in the village are a violation of federal law. County Tax Assessor Erma Phillips countered her actions were justified by a recent court decision permitting North Carolina counties to collect taxes on lease-hold properties. Can state law trump federal law? The county commissioners will decide.