Section 408 - Taxes Other than Income TaxesA. This account shall include the amount of ad valorem, gross revenue or gross receipts taxes, state unemployment insurance, franchise taxes, federal excise taxes, Social Security taxes, and all other taxes assessed by federal, state, county, municipal, or other local governmental authorities, which are properly chargeable to utility operations, except income taxes.B. This account shall be charged in each accounting period with the amount of taxes which is applicable thereto, with concurrent credits to account 236, Taxes Accrued, or account 165, Prepayments, as appropriate. When it is not possible to determine the exact amount of taxes, the amount shall be estimated and adjustments made in current accruals as the actual tax levies become known.C. The charges to this account shall be made or supported so as to show the amount of each tax and the basis upon which each charge is made.D. If the utility has elected the policy of deferring franchise tax payments concurrently with its adoption of deferred federal income taxes because of liberalized depreciation or accelerated amortization, such subaccounts may be raised hereunder to provide adequate information for: (a) Provision for Deferred Franchise Taxes. This sub-account(s) would be debited and an appropriate sub-account under Miscellaneous Operating Reserves-265, entitled Accumulated Deferred Franchise Taxes-Accelerated Amortization or Accumulated Deferred Franchise Taxes - Liberalized Depreciation would be credited. There would not be netted against entries required to be made to this sub-account(s) any credit amounts appropriately includible in Franchise Taxes Deferred in Prior Years Credit.(b) Franchise Taxes Deferred in Prior Years - Credit. This sub-account(s) would be debited and Accumulated Deferred Franchise Taxes -Accelerated Amortization or Accumulated Deferred Franchise Taxes -Liberalized Depreciation credited with an amount equal to the portion of the franchise tax payable for the year that is attributable to such deferrals of franchise taxes in a prior year. There should not be netted against entries required to be made to this sub-account(s) any credit amounts appropriately includible in Provision for Deferred Franchise Taxes.NOTE A. - Taxes applicable to nonutility property or investments shall be charged to the account in which the income from the property or investments is included.
NOTE B. - Special assessments for street and similar improvements shall be included in the appropriate utility plant or nonutility property account.
NOTE C. - Taxes specifically applicable to construction shall be included in the cost of construction.
NOTE D. - Taxes assumed by the utility on property leased from others for use in utility operations shall be charged to the appropriate rent expense or clearing account.
NOTE E. - Gasoline and other sales taxes shall be charged as far as practicable to the same account as the materials on which the tax is levied.
NOTE F. - Social Security and other forms of so-called payroll taxes applicable to construction shall be charged to the appropriate plant account.