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Building A New Home?


If you’re planning to build a new home or


building this spring, there are a few things you should know about your electric service before you begin.


Kiwash Electric will build 500 feet of power line from an existing pole to a new residence at no charge. A connection fee is required, and new members must pay a deposit and $5 member fee.


Before beginning your building project, be sure to discuss your plans with your co-op. This will help you avoid any surprise expenses. For example, if it’s necessary to run power line beyond 500 feet, you may be responsible for the additional construction cost. The cost of the additional line will be calculated by Kiwash Electric according to the terms and conditions of service, and you will be required to pay it before Kiwash begins construction.


You will find Kiwash Electric guidelines and policies on establishing a new service, installing underground service, and other details under the Residential Services tab www.kiwash.coop.


BY DENNIS KRUEGER G E N E R A L M A N A G E R


Giving Back Via Gross Receipts Tax K


iwash Electric and Western Farmers Electric Cooperative placed over $1.1 million into our area schools


in 2014 via the gross receipts tax.


Occasionally, Kiwash members ask about the gross receipts tax (GR Tax) on their monthly bill. The question usually comes from tax-exempt farm entities, non-profit organizations or disabled veterans. In response, we explain the validity and purpose of the two percent gross receipts tax, and the issue of exemption, by referring to the state statutes that require electric co-ops to pay it.


According to Oklahoma Statute (O.S.) 1803, cooperatives organized under the provisions of the Rural Electric Cooperative Act must pay a tax of two percent of the gross receipts from the sale and distribution of electricity for the calendar year.


This tax when paid is in lieu of any tax on its property which includes “any and all propert, tangible and intangible, real, personal, and/ or mixed, used or intended for use in generation, transmission and distribution of electric energy, and for the operation and maintenance of such rural electric cooperative.” (O. S. §§ 1803 and 1804)


Apply For Scholarships By April 15 Deadline


Teens interested in a $500 college scholarship from Kiwash Electric Cooperative must turn in a scholarship application by April 15, 2015.


For more details, please visit www.kiwash.coop, or call your cooperative at 888-832-3362.


These taxes are levied pursuant to Section 1803 of Title 68 and collected or received by the Tax Commission are apportioned in accordance with Section 1806 of Title 68, which states:


1. Five percent of the amounts collected are paid to the State Treasurer for placement to the credit of the General Revenue Fund


2. The remaining ninet-five percent of the amounts collected are paid to the school treasurers or school districts of the respective counties in which the remitting cooperative owns propert, and operates propert according to the proportion in


2 | APRIL 2015 | Kilowatt


which the number of miles of electrical distribution lines of such cooperative in such school district bears to the total number of miles of such lines owned and operated by such cooperative within the state.


Revenue distribution to the schools will be based upon the report filed by the Rural Electric Cooperative pursuant to 68 O. S. § 1805.


The two percent gross receipt tax is not imposed directly on the consumer, but instead on the Rural Electric Cooperative (REC), which becomes a pass-through calculation upon each consumer-member monthly bill. There are no statutory provisions exempting REC customers from the gross receipts tax billed by the REC. Therefore, no one is exempt from the two percent gross receipts tax itemized by the REC on each electric bill.


The table on page 3 provides a snap shot of the amount of gross receipts tax that Kiwash Electric Cooperative (KEC) and Western Farmers Electric Cooperative paid to the Oklahoma Tax Commission, which will then be reimbursed to local schools districts based on the number of miles of line in their district.


Gross receipts taxes provide a welcome boost to rural schools who receive less than 50 percent of state ad valorem tax collections. The money collected for gross receipts tax stays right here at home, helping our local schools and our local kids. While I may be unpopular for saying this—especially at tax time—the gross receipts tax is one tax we should feel good about paying.


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