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May
13, 2011
UPDATE:
Checks going out soon to CHEC members
By IRENE
NOLAN
On Thursday, May 12, Cape Hatteras Electric Cooperative received two
refund checks in settlement of the litigation with the North Carolina
Department of Revenue over sales and franchise taxes paid under protest
from 2000 – 2009.
The refund for sales tax payments totaled $5,287,875.37 and the
franchise tax refund totaled $5,250,082.27. The refunds included
interest at the rate of 8 percent through May 15.
CHEC staff will begin the process of refunding the sales taxes to the
members who paid those taxes from 2000-2009. The sales tax refund will
be processed using a program custom designed by the cooperative’s
consumer billing software company.
When the refunds are calculated they will first be applied to any
balance due on a member’s electric account. Remaining balances will be
refunded by check to all current and past members that paid sales tax
to CHEC from 2000-2009.
The refunds to members will include interest at the rate of 8 percent.
Because of the volume of checks to be processed, CHEC anticipates
completing the sales tax refund process in June.
The franchise tax that was paid by the cooperative must be recognized
as income in 2011 and allocated to members in the form of capital
credits. The refund, including 8 percent interest, will be allocated to
CHEC members that had electric accounts during the years 2001-2009 and
will be refunded in future capital credit retirements.
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