case on appeal, and members may be due large refund
The North Carolina Court of Appeals issued a unanimous decision on
Tuesday, March 1, regarding the ongoing litigation between Cape
Hatteras Electric Cooperative and the North Carolina Department of
The Court of Appeals affirmed the earlier position of the trial court,
which ruled in favor of CHEC. The Appeals Court decision
the judgment issued in November, 2009 ordering the NCDOR to refund the
sales and franchise taxes paid by the cooperative since 2000, including
NCDOR began collecting the sales and franchise taxes in 2000 and
2001. The cooperative paid the taxes under protest from 2000
until the Dare County Superior Court ruled in its favor in 2009.
The Superior Court found that the cooperative and its members did not
owe the taxes and has ordered the NCDOR to refund of more than $3.6
million in sales taxes and nearly $3.7 million in franchise taxes,
along with accrued interest.
CHEC has been working with the software vendor of its consumer
information system to create a program that will enable CHEC to refund
the sales taxes paid, plus interest, to its members as soon as the case
The NCDOR has until April 5 to file a petition with the North
Carolina Supreme Court to hear the case.