Wright-Hennepin returns sales tax to members
Posted on August 31, 2016
On behalf of our members, Wright-Hennepin Cooperative Electric Association (WH) has sought and successfully recovered refunds from the State of Minnesota for certain sales tax previously paid by its members. A portion of the payments for electric services was annually determined to be capital contributions (or member equity), and members are allocated capital credits for contributions above the cost of electric service.
WH took the position with the state that sales tax is not payable on electric service charges that are later determined to be capital contributions. We therefore requested a refund from the state.
After a contested case, a decision was reached which determined that refunds for certain years would be allowed. Refunds will be distributed to qualifying members and former members in the form of a check, or a bill credit for current members if it is less than $20, beginning in September.