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Income Taxes | 6 Months Ended
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Mar. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes On December 22, 2017, the TCJA became law. Its most significant impact was the reduction of the maximum corporate federal income tax rate from 35% to 21% beginning January 1, 2018. Under the provisions of ASC 740 - Income Taxes, the deferred tax assets and liabilities of the Company were revalued to reflect the reduction in the federal tax rate. For unregulated entities, the revaluation of excess deferred income taxes flowed through income tax expense in the period of change. For rate regulated entities such as Roanoke Gas, these excess deferred taxes were originally recovered from its customers based on billing rates derived using a federal income tax rate of 34%. As a result, these net excess deferred taxes must be returned to customers. The Company began refunding these excess deferred taxes in fiscal 2018. As the refunds should have no effect on the income of the Company, the consolidated income statements reflect both a reduction in revenues and a corresponding reduction in income taxes associated with the flow back of these net excess deferred taxes. The result is a lowering of the effective tax rate for the Company. A reconciliation of income tax expense from applying the federal statutory rates in effect for each period to total income tax expense is presented below:
| Three Months Ended March 31, |  | Six Months Ended March 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
Income before income taxes | $ | 7,467,808 |  |  | $ | 6,130,718 |  |  | $ | 12,716,331 |  |  | $ | 9,267,093 |
Corporate federal tax rate | 21.00 | % |  | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Income tax expense computed at the federal statutory rate | $ | 1,568,240 |  |  | $ | 1,287,451 |  |  | $ | 2,670,430 |  |  | $ | 1,946,090 |
State income taxes, net of federal tax benefit | 338,631 |  |  | 290,481 |  |  | 588,668 |  |  | 441,070 |
Net amortization of excess deferred taxes on regulated operations | (86,208 | ) |  | (86,208 | ) |  | (124,332 | ) |  | (172,417 | )
Other, net | (33,171 | ) |  | (31,096 | ) |  | (105,687 | ) |  | (51,902 | )
Total income tax expense | $ | 1,787,492 |  |  | $ | 1,460,628 |  |  | $ | 3,029,079 |  |  | $ | 2,162,841 |
Effective tax rate | 23.9 | % |  | 23.8 | % |  | 23.8 | % |  | 23.3 | %

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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