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Mineral looking for wind farm tax figures

Cumberland Times-News|Sarah Moses|July 22, 2009
MarylandWest VirginiaTaxes & Subsidies

A contract has yet to be drafted, but there was discussion during a work session Tuesday among the county commissioners and representatives from US Wind Force as to how the company would guarantee tax money to come into the county. "I'm trying to protect the people in Mineral County," Commission President Wayne Spiggle said. "I want to try to ensure they have the tax income from this industry. This industry has a unique taxation base."


Commissioners want to make sure constant revenue stream is seen from Pinnacle project

KEYSER, W.Va. - A contract has yet to be drafted, but there was discussion during a work session Tuesday among the county commissioners and representatives from US Wind Force as to how the company would guarantee tax money to come into the county.

"I'm trying to protect the people in Mineral County," Commission President Wayne Spiggle said. "I want to try to ensure they have the tax income from this industry. This industry has a unique taxation base."

US Wind Force is planning to build a 23-turbine farm on Green Mountain known as the Pinnacle wind farm.

While previous talks with the commissioners had included a "floor," or minimum fee to be paid …

... more [truncated due to possible copyright]

Commissioners want to make sure constant revenue stream is seen from Pinnacle project

KEYSER, W.Va. - A contract has yet to be drafted, but there was discussion during a work session Tuesday among the county commissioners and representatives from US Wind Force as to how the company would guarantee tax money to come into the county.

"I'm trying to protect the people in Mineral County," Commission President Wayne Spiggle said. "I want to try to ensure they have the tax income from this industry. This industry has a unique taxation base."

US Wind Force is planning to build a 23-turbine farm on Green Mountain known as the Pinnacle wind farm.

While previous talks with the commissioners had included a "floor," or minimum fee to be paid by US Wind Force to guarantee a steady flow of income, Spiggle said that he wants to see the company commit to the tax rate that it set in its informational materials. He said if the company wasn't willing to stand behind the tax payments anticipated over the life of the project, then that information was simply "public relations."

Dave Friend, vice president for sales and marketing, said what they had previously discussed was a minimum amount and that he wasn't prepared to discuss paying the estimated tax amounts each year. He said discussions with the commissioners weeks ago included a proposal similar to that given to Greenbrier County, which would set the minimum amount the county could possibly receive, regardless of what would happen to tax rates at the state or local level.

He said the company no more wants to be held up to a higher fee than the county would want to be capped to those amounts should property tax rates on wind turbines change to benefit the county.

The estimates, Friend added, have been verified by the state and county assessors' offices as being an accurate reflection of property taxes at this time.

Rick Linthicum, president of the Mineral County Development Authority, questioned whether all businesses, or all power-generating businesses, would be required to pay the county a minimum fee in case the tax rates should change.

"If you're asking do we feel a little singled out?" Friend said. "Yes."

If the company and the commissioners could work together to find a number they are both comfortable with, Commissioner Janice LaRue said it would be acceptable. Both LaRue and Commissioner Cindy Pyles were open to the idea of a floor, rather than trying to get the company to pay the estimated taxes for each year.

LaRue added her largest concern with the taxes comes with an unfamiliarity to why the industry is only taxed 5 percent of its salvage value, rather than the actual value of the property.

Jim Cookman, US Wind Force vice president of project development, said it was done to allow wind energy to be competitive with the coal and fossil fuel industries. He added that 21 percent of the project would be upheld to traditional taxation practices and the remaining 79 percent would be at 5 percent of salvage value.

As for the decommissioning of the turbines, Friend said that the full amount for removal of the turbines, minus the salvage value, will be put into an escrow account. Should the company not take down the turbines, he said the property owners will have the funding available to do so.

Each five years, he added, the company would use an engineer approved by the county commission to estimate the salvage value of the turbines and the cost for removal and the escrow account would reflect how that changed with each revision in cost. Commitments like these as well as the Community Benefits Fund would be part of the transfer of the project from company to company, Friend said.

Spiggle added he felt the county needs a more proactive stance on the wind industry and to be more prepared for future projects. He suggested that it be something refered to the county planning commission.


Source:http://www.times-news.com/loc…

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