Tax exemption for renewable resources.
Based on the material cost information for wind turbines currently under construction, a 1.5 megawatt wind turbine is estimated to cost $2,937,000. Based on an average applicable sales tax rate of 5.2%, the current renewable resource exemption results in a decrease in sales and use tax revenues of roughly $153,000 per wind turbine constructed, split 53% General Fund and 47% local governments.
Prepared by: Dean Temte, LSO Phone: 777-7881
(Information provided by Dan Noble, Dept. of Revenue; 777-5220)