This year, tax filing deadline falls on Tuesday, April 17.
Tax season affects us all – even your electric cooperative. But it may surprise you to know that most of Great Lakes Energy’s tax payments don’t go to the IRS.
As a not-for-profit electric co-op, we don’t pay federal tax on electricity sales. For that reason, recent federal tax changes have little impact on us. However, we still pay other taxes. In fact, a good share of our tax expenses provides revenue to help support local governments, schools, senior care facilities and other services supported by property taxes.
In 2017, we paid over $5 million in property taxes, which is GLE’s biggest tax expense. The bulk of that is personal property taxes levied on over 14,000 miles of power line and distribution system equipment. In addition, GLE pays taxes for its buildings and land at its offices and service centers. Employee payroll taxes paid by GLE for its share of FICA (social security) and federal unemployment taxes totaled over $1.56 million last year.
Sales tax on office supplies, computer equipment, distribution system materials (poles, wires, etc.) and other materials and supplies purchased totaled $762,000 in 2017. This is in addition to the sales tax levied on your bill, which is collected and sent to the State of Michigan.
Federal income taxes make up the smallest share of our tax bill, amounting to just $16,663 for 2017.
The taxes we pay make up part of the monthly charge you pay each month and are just one of many fixed costs we incur in providing you with safe and reliable electric service.
Learn more about the other fixed costs that make up your monthly charge.