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Electric Cooperative Tax
2016 Annual Report


Electric Cooperative Tax Reports





AS 10.25.540

Description

Alaska levies an electric cooperative tax on kilowatt hours furnished by qualified electric cooperatives recognized under AS 10.25.

Rate

The electric cooperative tax is based on a rate per kilowatt hour (kWh), and on the length of time the cooperative has furnished electricity to consumers as follows: $0.00025 per kWh for cooperatives that have furnished electric energy and power to consumers for less than five years as of Dec. 31 of the preceding calendar year or $0.0005 per kWh for cooperatives that have furnished electric energy and power to consumers for five years or longer as of the preceding calendar year.

Returns

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

Exemptions

All qualified electric cooperatives are subject to the cooperative tax. Cooperatives pay the electric cooperative tax in lieu of corporate net income and excise taxes.

Disposition of Revenue

The Department of Revenue’s Tax Division deposits all revenue derived from electric cooperative taxes into the General Fund.

Electric cooperative taxes sourced from within municipalities are shared 100% to respective municipalities, less the amount expended by the State of Alaska in their collection.

The state retains electric cooperative taxes sourced from outside municipalities.

History

1959 – The Alaska Legislature enacted the electric cooperative tax as part of the “Electric and Telephone Cooperative Act” that was adopted to promote cooperatives around the state. The due date for filing electric cooperative tax returns was April 1 of the following year.

1960 – The Legislature changed the due date for paying taxes to March 1.

1980 – The Legislature changed the tax base for calculating the electric cooperative tax from gross revenue to kWh. The Legislature adopted the current mill rates. (As far as electrical cooperative tax, one “mill” means one-tenth of one cent, according to AS 10.25.555.)



Data with additional years.

  Collections Summary

Fiscal Year

 2016 2015 2014 2013

   Tax Collections

 $2,015,794 $2,008,278 $2,001,497 $2,072,147

   Taxes Shared

 (1,971,588) (2,001,304) (1,964,614) (2,037,896)

   Tax Retained by State

 $44,206 $6,974 $36,883 $34,251


  Filing Information

Fiscal Year

 2016 2015 2014 2013

   Number of Returns

 17 21 16 21

   Number of Taxpayers

 17 17 15 21





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