Shareholder-Owned Electric Companies Are A Significant Source Of Tax Revenue For Thousands Of Communities Across America.
Governments have traditionally relied on shareholder-owned electric companies as a source of tax revenue. These electric companies pay federal and state income taxes and other local taxes, such as property taxes. For the year ended December 31, 2005, shareholder-owned electric companies paid a total of $30.0 billion in taxes. Of that amount, $14.8 billion was spent on federal, state, and local income taxes, and $15.2 billion was paid for taxes other than income taxes.
Most electric cooperatives are exempt from federal and state income taxes, but do pay other types of state and local taxes. Local governmentowned utilities also are not subject to most federal, state, and local taxes but some make payments in lieu of taxes. Federally owned utilities generally are exempt from federal, state, and local taxes.