Telephone Cooperative Tax
2014 Annual Report


Telephone Cooperative Tax Reports
End Year



TELEPHONE COOPERATIVE TAX
AS 10.25.550
DESCRIPTION
Alaska levies a telephone cooperative tax on gross revenue of qualified telephone cooperatives under AS 10.25. The Division collects taxes from cooperatives.

RATE
The telephone cooperative tax rate is based on revenue and the length of time in which the cooperative has furnished telephone service to consumers as follows:

LENGTHPERCENT OF REVENUE
Less than 5 years1%
5 years or longer2%


RETURNS
Telephone cooperatives file calendar year returns that are due with payment before March 1 of the following year.

EXEMPTIONS
All qualified telephone cooperatives are subject to the cooperative tax. Cooperatives pay the telephone cooperative tax in lieu of corporate net income tax.

DISPOSITION OF REVENUE
The Division deposits revenue from the telephone cooperative tax into the General Fund.

Telephone cooperative taxes sourced from within municipalities are shared 100% to respective municipalities less the amount expended by the state for collection of taxes.

The state retains telephone cooperative taxes sourced from outside of municipalities.

HISTORY

1959 - The legislature enacted the telephone cooperative tax as part of the “Electric and Telephone Cooperative Act” to promote cooperatives around the state. The due date for filing telephone cooperative tax returns was April 1 of the following year.

1960- The legislature changed the due date for filing returns to “before March 1.”



Click here for data with additional years.

  Collections Summary

Fiscal Year

2014 2013 2012 2011

   Total Tax

$2,191,094

$2,222,538

$2,067,213

$1,897,512

   Taxes Shared

(1,971,302) (2,071,131) (1,913,065) (1,769,193)

   Tax Retained by State

$219,793 $151,407 $154,147 $128,318


  Filing Information

Fiscal Year

2014 2013 2012 2011

   Number of Returns

7 6 7 12

   Number of Taxpayers

6 6 7 7





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