Dakota Energy pays gross kilowatt hour tax

Dakota Energy is a rural electric cooperative. South Dakota law requires DEC to pay a tax on the kilowatt hours (kWh) that are sold during a year. The kWhs are tracked by the location they are sold and then allocated to the local school district. The tax is then distributed to the school district by the local county.

This is the cooperative’s way of paying taxes in place of a property tax on all the electric lines and equipment installed in the service area in public and private rights-of-way.

Fifteen school districts in our service area received a total of $773,190.78 in gross kWh tax because of electric sales to members of Dakota Energy Cooperative in 2022.