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LIVEWIRE | PAGE 3 Tax benefits local schools BY JULIANN GRAHAM, Communications Specialist


n 2012, members of Tri-County Electric Cooperative in Oklahoma contributed nearly $1.5 million to local secondary schools through the state’s gross receipts tax. This two percent tax appears on electric bills under the ‘other taxes’ line item. The taxes are allocated based on the number of miles of electric line in the school district.


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The gross receipts tax directly benefits local schools in the cooperative’s service territory, with 95 percent of funds collected being distributed to them. The remaining 5 percent goes toward the state’s administrative costs. This is yet another way electric cooperatives and their members support their local youth. See the chart on this page showing how the Oklahoma gross receipts tax collected in 2012 was allocated. Schools the cooperative serves in Kansas and Texas are not included because the tax is for the state of Oklahoma only.


Tri-County Electric pays gross receipts taxes to the Oklahoma Tax Commission every year. In 2012, the cooperative paid taxes on 4,780 miles of line, or $312.23 per mile of line. Zac Perkins, Corporate Services vice president, said the Tax Commission is responsible for allocating and distributing the funds to schools. Schools may use these funds in a variety of ways, but the local school boards have final say in how the money is spent.


“Cooperatives are pleased to pay this tax because it benefits our local schools,” Perkins said. “These funds help provide a better learning environment and education for our youth. While we may grumble about other taxes, we know this one directly benefits our rural communities.”


While not-for-profit electric cooperatives like Tri-County Electric are exempt from paying federal income tax, they do pay other taxes, including: fuel tax, state and federal unemployment tax, Social Security, and Medicare. Of course, they also pay the gross receipts tax which is in lieu of the ad-valorem tax paid by for-profit utility companies. n


school Balko


Beaver


Boise City Felt


Forgan


Goodwell Guymon Hardesty


2012 OklAHOmA GROss RECEiPTs TAX ALLOCATION Dollars school $152,475 Hooker $88,522 Keyes $186,527 Optima $78,928 Straight $67,197 Texhoma $60,517 Turpin $140,382 Tyrone


miles 488 284 597 253 215 194 450 237


miles 358 284 79


168 223 445 93


$74,086 Yarbrough TOTAL......................................................................... 412


CEO VIEW CONTINUED FROMPAGE ONE


Two years ago, Tri-County Electric adopted a new approach for its school support. The cooperative now provides a single annual donation to every school within its service territory based on enrollment numbers. School administrators then decide how to best allocate the funds. In October 2012, the cooperative distributed more than $50,000 to local school districts.


This is a win for the school because they have funds for any special projects like playground equipment as well as the smaller things like yearbook and FFA sponsorships. It’s a win for the cooperative because it makes our school support visible.


While $50,000 may sound like a lot of money and it makes a difference to schools, the amount is not so much that it impacts the member’s cost. Giving back to the communities the cooperative serves illustrates the principle of “Concern for Community.” That’s what distinguishes our business from other for-profit companies.


Another way the cooperative supports local schools is in the distribution of the Get Charged and CFL Charlie educational kits. We will even send a representative to present the curriculum at the school.


Dollars $111,833 $88,656 $24,630 $52,325 $69,684 $139,087 $29,015 $128,585


4780 $1,492,447


Finally, we support our local university and our youth by contributing $9,600 to the Panhandle State Foundation for scholarships to Oklahoma Panhandle State University. This is a new approach from prior years when the cooperative directly administered smaller scholarships itself.


I encourage educators to subscribe to our free monthly Plugged In e-newsletter for the latest information on programs available to our local schools. Find more details on our support at www.tcec.coop. n


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