Tax Helps Local Schools
In 2015, TCEC members with service in Oklahoma contributed more than $1.8 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.
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 local youth. See the chart on this page showing how the Oklahoma gross receipts tax collected in 2015 was allocated. Schools the cooperative serves in Kansas and Texas are not included because the tax is for the state of Oklahoma only.
TCEC pays gross receipts taxes to the Oklahoma Tax Commission every year. In 2015, the cooperative paid taxes on 5,181 miles of line, or $354 per mile of line. The Oklahoma 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.
TCEC CEO Zac Perkins said, “This tax benefits our local schools, helping to provide a better learning environment and education for our youth.”
Learn more about TCEC’s school support at www.tcec.coop.