Other Taxes
Historical Overview







Electric Cooperative Tax



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.)


Regulatory Cost Charges



Utilities AS 42.05.254(e), Pipeline AS 42.06.286(c)

Description

Alaska levies regulatory cost charges (RCC) on regulated utilities. The charges fund the Regulatory Commission of Alaska (RCA) that regulates utilities and pipeline carriers in Alaska. Regulated utilities collect charges from consumers and remit the collections to the Tax Division.

The RCA is responsible for RCC returns and reports, and the Tax Division is responsible for reporting the revenue received.

Rate

Rates are available on the Alaska Regulatory Commission’s website.

Returns

Quarterly returns and payment of RCCs are due on the 30th day following the calendar quarter. Utilities and carriers are required to file a copy of the return with the RCA.

Exemptions

Utilities not regulated by RCA are exempt from the RCC program.

Disposition of Revenue

The Tax Division deposits all revenue derived from the RCC program into the General Fund. The Alaska Legislature may make appropriations from the General Fund to fund RCA based on regulatory cost charges collected.

History

1992 – The Legislature enacted the RCC program to fund RCA’s costs of regulating utilities. The RCC legislation provided for a sunset date of December 1994. Rates went into effect through regulations that became effective in November 1992.

1994 – In the fall of 1994, RCA promulgated regulations that established RCC rates for FY 1995 on an annualized basis. The regulations took effect in December 1994.

1995 – The Legislature reauthorized the RCC program, effective June 1995. In October 1995, RCA adopted regulations to reestablish quarterly payments.

1999 – The Legislature authorized separate RCC rates for each regulated utility and changed the methodology for calculating rates.

2007 – The RCA implemented online report filing through the its website. RCA assumed responsibility for processing returns and collecting data; the Tax Division continued to collect revenue as required by statute.

2012 – The RCA required mandatory electronic filing and service in all docket proceedings effective February 2012, with an opportunity for a waiver.

FY 2016 Statistics

Total RCC collections in FY 2016 were $838,183.


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 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 Tax 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.”