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Telephone Cooperative Tax
2016 Annual Report


Telephone Cooperative Tax Reports






AS 10.25.550

Description

Alaska levies a telephone cooperative tax on gross revenue of qualified telephone cooperatives under AS 10.25. The Department of Revenue’s Tax 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:

  • For telephone cooperatives that have furnished telephone service to customers for less than five years, the tax is 1% of revenue.

  • For telephone cooperatives that have furnished telephone service to customers for five years or longer, the tax is 2% of revenue.

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 of Alaska for the collection of taxes.

The State of Alaska retains telephone cooperative taxes sourced from outside municipalities.

History

1959 – The Alaska 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.”



Data with additional years.

  Collections Summary

Fiscal Year

 2016 2015 2014 2013

   Total Tax
$2,287,312
$2,191,258
$2,191,094
$2,222,538

   Taxes Shared

 (2,123,389) (1,975,119) (1,971,302) (2,071,131)

   Tax Retained by State

 $163,923 $216,138 $219,793 $151,407


  Filing Information

Fiscal Year

 2016 2015 2014 2013

   Number of Returns

 8 11 7 6

   Number of Taxpayers

 7 7 6 6





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