Electric co-op taxes aid area schools At a time when school funding and opt-out votes are constantly in the headlines of newspapers across the state, Clay-Union Electric Corporation of Vermillion is doing its part to help support the school systems in a five county area in southeast South Dakota.
Contrary to some beliefs, Clay-Union Electric, as a non-profit cooperative, does indeed pay taxes to help support the school districts that fall within its service territory. Under a state law passed in 1941, the rural electric cooperatives in the state are required to pay 2 percent of their gross revenue in their service area.
Thanks to this law, the school districts in Clay-Union Electric's service territory will share in a total $102,903 of gross tax funds that came as a result of the receipts for electrical power sold to members of the cooperative. Also sharing in paying this total amount were East River Electric and Basin Electric.
In addition, Basin Electric, which is the power generation provide for Clay-Union Electric, is also required to pay property taxes on the Spirit Mound Peaking Station, which is located north on Vermillion, in Clay County.
The gross revenue tax is allocated to the different school districts through the county treasurer's office. The tax is calculated on the gross revenue received from members of the cooperative from within each of the school districts.