Wyoming governor works to revive wind tax proposal for upcoming Legislature

By Matt Joyce, AP
Thursday, January 21, 2010

Wyoming governor works to revive wind tax proposal

CHEYENNE, Wyo. — Wyoming Gov. Dave Freudenthal said he’s working with lawmakers on a proposal for the upcoming Legislature to tax wind energy production.

Freudenthal’s pursuit of a wind tax bill follows a November vote by the Joint Revenue Committee against sponsoring two bills to tax wind energy generation.

The governor said a wind tax would level the playing field.

“All of the other sources of energy pay to contribute, to help build the state, and it’s only fair,” Freudenthal said. “One of the things I want to do in this bill is to return a big chunk of the revenue back to the counties where the turbines are located, because they have to maintain the roads and they have to do all of that.”

Freudenthal wouldn’t discuss specifics of a potential new wind tax bill during an interview last week or name the legislators he’s working with.

The Wyoming Power Producers Coalition, a wind industry group, planned to meet with the governor’s office on Thursday to discuss the wind tax issue, said Cheryl Riley, the group’s executive director. The coalition planned to present some “numbers and concepts” requested by the governor, she said.

She said the group’s position on a wind tax will depend on the specifics.

“All along we’ve said that we want to be part of a solution figuring this out,” Riley said.

Wyoming wind farms currently pay property tax, and when an exemption sunsets at the end of 2011, wind developers will begin paying 6 percent sales tax on equipment.

The two bills the Joint Revenue Committee voted down would have implemented a state tax on electricity generation while also providing exemptions and credits so other power generators, such as coal-fired power plants, would ultimately break even.

Wind industry representatives told committee members that the proposals would increase costs for Wyoming households and hurt the wind industry.

Freudenthal said the previous proposal died because it was too confusing. He said his renewed effort “may or may not work.”

“It’s a new idea,” Freudenthal said. “If you look at it, there’s a whole set of new issues surrounding wind that we have to figure out the principle of on our terms.”

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