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Cotton Electric Cooperative is very active in area schools.
Each year, Cotton Electric participates in a variety of educational
projects that involve our area youth. These projects include:
- Youth Tour essay contest
- Electrical Safety poster contest
- YouthPower Energy Camp
- Electrical Safety Classes
Cotton Electric also supports our area schools through a
gross receipts tax on revenue that goes directly to our school
districts. Since education plays such an important role in
today's society, it is important that each school has the
necessary supplies, materials and equipment to ensure the
best education possible. Cotton Electric Cooperative is proud
to support the local school systems throughout the eight-county
service territory, which includes a total of 30 schools. This
overall support of all area schools is adamantly encouraged
by the Cooperative's Board of Directors, management and staff.
A two percent gross receipts tax on revenue at both the wholesale
and retail level is levied upon your electric cooperative
in lieu of ad valorem tax. Ninety-five percent of the gross
receipts tax is then apportioned by the Oklahoma Tax Commission
directly back to school districts in local cooperative service
areas. The other five percent of the total tax paid goes to
the state of Oklahoma's general revenue fund.
The amount paid to each school is based upon the number of
miles of power lines that Cotton Electric Cooperative and
Western Farmers Electric Cooperative have in each school district.
Investor-owned utilities pay ad valorem taxes instead of
a gross receipts tax. Only 58% of this tax goes to school
districts within which they own property. The Municipal Electric
Systems of Oklahoma contribute no tax money to public schools.
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