Baldwin EMC Makes Tax Payments
January 31, 2012
Baldwin EMC has
recently completed the payment of more than $13.8 million in taxes for 2011.
This is a combination of payroll taxes, property taxes, state revenue taxes,
and city license taxes.
City license taxes
were delivered by Baldwin EMC Board Members and employees to each city within
the cooperative’s service area over the past month.
While cooperatives
do maintain a not-for-profit, tax-exempt status, Baldwin EMC’s Chief Executive
Officer E.A. “Bucky” Jakins, Jr. says that title can be misleading. “Baldwin
EMC is not-for-profit in that we only take in enough revenue to cover our
operating costs,” Jakins explains. “Anything in excess of that is refunded to
our members.” Baldwin EMC actually pays a tax of three percent on gross
revenue received from its members who live within a municipality’s city limits.
A tax of 1.5 percent is paid on gross revenue received from members living
within a municipality’s police jurisdiction.
Jakins says for
2011, the cooperative paid $978,419 in payroll taxes, $1,224,728 in
property taxes, $8,814,370 in Alabama revenue taxes, and $2,810,131 in city
license taxes, for a total of $13,827,648.