Gross Revenue Surcharge
While the cooperative is not-for-profit, it is not tax exempt. Oklahoma state statutes define how electric cooperatives are to pay taxes. In accordance to Section 1803 of Title 68, rural electric cooperatives must pay a tax at the rate of 2% of the gross receipts derived by the sale of electric energy during the calendar year. This tax is paid in lieu of property tax. Cooperatives must also pay an annual fee of $1.00 per 100 persons to whom it supplies electricity within the state, but shall be exempt from all other excise and income taxes.
The taxes are then apportioned by the Oklahoma Tax Commission. Of the taxes collected, 5% are paid to the State Treasurer for placement to the credit of the General Revenue Fund. The remaining 95% of the amounts collected are paid to the school districts in relation to the miles of distribution power line the cooperative owns in each school district.