NEW WIND, HIGH OIL PRICES CUT TAX BURDENS; ONE RUNS OUT, THE OTHER IS EVER NEW

In Texas counties where the wind energy industry is rolling across the land like the wagon trains that settled the prairies, the revenues wind is bringing in are allowing the residents' tax burden to drop faster than the turbines are going up. Faster than Alaska’s Governor Palin can say “drill, drill, drill.”

One county, very active in wind development, has lowered its tax rates almost 5 cents per $100 valuation.

And property values are going up so fast it may negate the benefits of the drop in taxes. (Is that good news or bad news? Good news!)

In petroleum-rich Jones County, tax rates have also dropped and property values zoomed, faster than Russia invaded Georgia, due to rising oil and natural gas prices. Total appraised value in Jones County is ~$575 million, up from last year’s ~$512 million.

Here’s the catch: Of that $63 million jump in Jones County valuation, only $8.7 million is new residential construction. Most is increased mineral values. And those mineral values will fall off when the wells run dry. The wind energy-generating capacity being built in Nolan and Taylor Counties will be endlessly productive.

Most wind asset-rich Texas counties offer 10-year tax abatements to lure wind energy companies. Wind is a predictable asset and it is expected to hold its value. New projects start every year and they never turn up a dry hole.

George Newman, Judge, Taylor County: "Our economy is strong…because wind energy has come to this area."

Governor Palin would be the first to report on how much stronger the oil industry has made – and continues to make – her state of Alaska. Here’s the question: What will Alaska have when the oil and gas run out? The same thing Jones County will have when their mineral reserves are expended. (Plus more snow,)

Nobody in the Texas panhandle expects to EVER run out of wind.

Texas energy. (click to enlarge)

Wind energy credited for tax-rate drops
Loretta Fulton, August 26, 2008 (Abilene Reporter-News)

WHO
Nolan, Taylor and Jones County residents and officials (Tim Fambrough, Judge, Nolan County; George Newman, Judge, Taylor County; Dale Spurgin, Judge, Jones County)

WHAT
In Texas counties where wind energy generating capacity is growing, the tax rate is going down as fast as the turbines are going up. With rising oil and gas prices, Jones County is seeing the same benefits.

Texas wind. (click to enlarge)

WHEN
Tax rates and property values are changes from last assessment to current assessment.

WHERE
Nolan, Taylor, Jones counties, Texas

WHY
- Nolan County tax rates have dropped almost 5 cents per $100 valuation (40.53 cents to 35.75 cents).
- Taylor County’s tax rate is slightly lower (47.07 cents per $100 valuation to 46.82).
- Jones County’s tax rate has dropped 3+ cents (58.00 cents per $100 valuation from 61.57 cents).
- Property rates are on the rise and could offset the benefits of the tax rate decrease.
- All 3 counties give standard homestead and senior/disabled exemptions.
- Taylor County's tax rate was 53.59 cents per $100 valuation in 2005, compared with the proposed 46.82 cents for the upcoming fiscal year.
- Taylor County's tax base in 2003 was $3.8 billion, compared with the current $6.2 billion. The first wind turbines started whirling in 2005, which accounted for much of the increased value

Texas future. (click to enlarge)

QUOTES
- Tim Fambrough, Judge, Nolan County: "We're very proud of it…"
- George Newman, Judge, Taylor County, on the role of wind developers in tax rate cuts: "They play a big part…"