Question: What is the proper accounting for revenues received from the States, or other political subdivisions of the United States for collecting and remitting certain withholding, sales, local occupational, etc. taxes?
Answer: Amounts received from utility operations should be recorded in Account 456, Other Electric Revenues, for electric utilities and in Account 495, Other Gas Revenues, for gas utilities. Related costs should be included in the appropriate utility operation expenses. Any revenues or expenses related to the collection of such taxes from nonutility operations should be included in the appropriate nonutility revenue and expense accounts.
Arthur L. Litke
Chief Accountant
Effective: November 1, 1969