Note 9 - Income Taxes

12 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9.   INCOME TAXES

Components of tax expense (benefit) are as follows:

	Year Ended March 31,
	2022			2021
Federal
Current	$	3,881,166		$	1,904,797
Deferred		(478,918	)		1,100,368
		3,402,248			3,005,165
State
Current		944,809			554,212
Deferred		(82,821	)		238,121
		861,988			792,333
Total	$	4,264,236		$	3,797,498

The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:

	Year Ended March 31,
	2022			2021
Income tax expense at U.S. federal statutory rate		21.0	%		21.0	%
Current year state and local income taxes net of federal income tax benefit		3.7			4.1
Other		(1.4	)		(0.1	)
Provision for income taxes		23.3	%		25.0	%

The Company’s tax returns may be subject to examination by the Internal Revenue Service for the fiscal years ended March 31, 2019 through March 31, 2021. State and local returns may be subject to examination for fiscal years ended March 31, 2018 through March 31, 2021.

Deferred income taxes are provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s consolidated deferred tax assets (liabilities) are as follows:

	March 31,
	2022			2021
Deferred tax liabilities:
Depreciation	$	(1,788,033	)	$	(1,945,788	)
LIFO to average cost Section 481(a) adjustment		—			(301,110	)
Total deferred tax liabilities		(1,788,033	)		(2,246,898	)
Deferred tax assets:
Unrealized derivative loss - OCI		3,271,192			3,564,059
Inventory capitalization		98,227			63,468
Postretirement benefits other than pensions		28,893			26,240
Restricted stock compensation		69,122			328,434
Unrealized loss - mark to market derivatives		388,213			94,306
Other		65,681			34,815
Total deferred tax assets		3,921,328			4,111,322
Net deferred tax asset	$	2,133,295		$	1,864,424