FISCAL NOTE
Date Requested: February 02, 2024
Time Requested: 02:56 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3170 |
Comm. Sub. |
SB512 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
General Revenue Fund, local governments
Sources of Revenue:
General Fund local property tax revenue
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to clarify that solar farms are not agricultural operations or in the business of farming for purposes of Property Tax.
The committee substitute, as written, clarifies that the development, operation, or ownership of a solar farm is not an agricultural operation unless the solar arrays are elevated such that pasture animals may graze underneath. Any farm acreage on which solar arrays are not raised and the electricity generated from those solar arrays is sold commercially will not be considered farming for Property Tax purposes. A farm will not lose its classification as a farm for Property Tax purposes if solar panels are installed solely on the residence, barn, or other building related to farming.
Passage of this bill could result in an increase in revenue to the State and some local governments if there are any current commercial solar farms classified as part of a Class II farm property that would be reclassified as a Class III commercial operation.
There would be no additional administrative costs.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The committee substitute, as written, clarifies that the development, operation, or ownership of a solar farm is not an agricultural operation unless the solar arrays are elevated such that pasture animals may graze underneath. Any farm acreage on which solar arrays are not raised and the electricity generated from those solar arrays is sold commercially will not be considered farming for Property Tax purposes. A farm will not lose its classification as a farm for Property Tax purposes if solar panels are installed solely on the residence, barn, or other building related to farming.
Passage of this bill could result in an increase in revenue to the State and some local governments if there are any current commercial solar farms classified as part of a Class II farm property that would be reclassified as a Class III commercial operation.
There would be no additional administrative costs.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov