Effective Tax Rate

9 Months Ended

Jun. 30, 2013

Effective Tax Rate

Effective Tax Rate

Note 14 – Effective Tax Rate

Income tax expense for the nine months ended June 30 is as follows:

	2013			2012
Current	($	537,247	)	$	124,582
Deferred		(644,663	)		(1,119,902	)
Total	($	1,181,910	)	($	995,320	)

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	$	1,169,718		$	888,243
State tax expense (net of federal)		244,265			185,486
Net operating loss carryforwards		—			67,961
Other, net		(232,073	)		(146,370	)
Actual tax expense	$	1,181,910		$	995,320

The effective tax rate for the period ending June 30, 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 June 30, 2012 was 38.1% instead of the expected rate of 41.1% due to reconciliation of a prior period tax liability offsetting the benefits of bonus depreciation.