Effective Tax Rate

6 Months Ended

Mar. 31, 2013

Effective Tax Rate

Effective Tax Rate

Note 14 – Effective Tax Rate

Income tax expense for the six months ended March 31 is as follows:

	2013		2012
Current	$	597,879	$	210,843
Deferred		381,501		819,822
Total	$	979,380	$	1,030,665

Actual income tax expense differs from the expected tax expense (computed by applying the federal corporate tax rate of 34% and state tax rate of 7.1% to income before income tax expense) as follows:    

	2013			2012
Expected federal tax expense	$	968,907		$	969,553
State tax expense (net of federal)		202,331			202,465
Net operating loss carryforwards		—			67,961
Other, net		(191,858	)		(209,314	)
Actual tax expense	$	979,380		$	1,030,665

The effective tax rate for the period ending March 31, 2013 was 34.4% instead of the expected rate of 41.1% mainly due to components of non-taxable income and reconciliation of tax rates for prior periods. The effective tax rate for the period ending March 31, 2012 was 40% instead of the expected rate of 41.1% due to reconciliation of a prior period tax liability offsetting the benefits of bonus depreciation.