1This is Your Membership Co-op!
Utility Taxes -
Wiregrass Electric Cooperative is subject to payment of all taxes paid by other businesses with the exception of income tax. WEC pays real estate taxes, sales taxes, payroll taxes, and highway fuel taxes. The Cooperative pays no income tax because it has no income profit (any profit, or margins, is allocated to the members’ accounts as Capital Credits). Taxes paid by Wiregrass Electric Cooperative amount to over $2.5 million per year.
The Alabama State Tax Code 01 requires the Cooperative to collect a 4% state utility tax on all sales plus a 2.2% utility license tax.
Utility Gross Receipts Tax
WEC is required to collect the Utility Gross Receipts Tax which is 4 % of gross sales or gross receipts.
Utility Service Use Tax
WEC is also required to collect the Utility Service Use Tax which is 2.2 % of each dollar of gross receipts. (Electric utilities operated by municipal systems such as Dothan and Hartford are exempt from this tax while cooperatives and investor owned utilities are required to pay.)