Tax exemption for renewable resources.





This bill changes the repeal date of the sales and use tax exemption on equipment used to generate electricity from renewable resources from June 30, 2012 to January 1, 2010.


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)