Fillable Form Rea-1 - Cooperative Electric Association (Page 2 of 2) in pdf

Form REA-1 Instructions

Penalties and Interest

Rural electric cooperative associations are

Minnesota Statute 273.41,

required to pay a tax based on the number

If you don’t file your return on time or pay

Amount of Tax; Distribution

of its members as of Dec. 31 of each year.

the amount due by the due date, you may be

The tax is $10 for each 100 members of the

charged penalty and interest.

There is hereby imposed upon each such

association, or fraction thereof, and is due

cooperative association on December 31

Late-Payment Penalty. A late payment

by March 1 of the next succeeding year.

of each year a tax of $10 for each 100

penalty is assessed on any tax not paid by

members, or fraction thereof, of such as-

If the tax is not paid in full by the due date,

March 1. The penalty is 10 percent of the

sociation. The tax, when paid, shall be in

a penalty of 10 percent of the unpaid tax,

unpaid tax.

lieu of all personal property taxes, state,

plus interest, will be assessed until the bal-

Interest. You must also pay interest on the

county or local, upon distribution lines

ance is paid in full.

penalty and tax you are sending in late.

and the attachments and appurtenances

The REA membership tax is in lieu of all

Interest is calculated using the following

thereto of such associations located in

personal property taxes on distribution lines

formula:

rural areas. the tax shall be payable on or

and their attachments and appurtenances.

before March 1 of the next succeeding

Interest = (fee + penalty) × # of days late ×

year, to the commissioner of revenue.

interest rate ÷ 365

Minnesota Tax ID Number

If the tax, or any portion thereof, is not

You can find the current interest rate on our

paid within the time herein specified

Enter your seven-digit Minnesota tax ID

website.

for the payment thereof, there shall be

number. If you don’t have a Minnesota tax

added thereto a specific penalty equal to

ID number, you can register for one online

Payment Method Penalty. You may be

ten percent of the amount so remaining

at or by calling

required to pay your tax electronically. If

unpaid. Such penalty shall be collected

651-282-5225 or 1-800-657-3605.

you are required by state law to pay your tax

as a part of said tax, and the amount of

electronically and the payments are remit-

said tax not timely paid, together with

To Pay Electronically

ted by some other means, a penalty will be

said penalty, shall bear interest at the

If you’re required to pay any Minnesota

assessed. The penalty is 5 percent of each

rate specified in section 270C.40 from

tax electronically, you’re required to pay all

payment that should have been remitted

the time such tax should have been

Minnesota taxes electronically—including

electronically.

paid until paid. The commissioner shall

the tax based on your members. Failure to

deposit the amount so received in the

pay electronically when required will result

Information and Assistance

general fund of the state treasury.

in a penalty being assessed. The penalty is

Website:

5 percent of each payment that should have

Phone: 651‑556‑3060 (TTY users: Call

been remitted electronically, but was remit-

711 for Minnesota Relay)

ted by some other means.

To pay your tax electronically:

• Go to and log

in to e-Services; or

• Call 1‑800‑570‑3329 to pay by phone.

You’ll need your user name, password

and banking information. When paying

electronically, you must use an account not

associated with any foreign banks.

Note: If you are using the system for the first

time and you need a temporary password,

call 651-282-5225 or 1-800-657-3605.

Form Rea-1 - Cooperative Electric Association Page 2

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