FISCAL NOTE
Date Requested: February 03, 2026
Time Requested: 05:23 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1389 |
Comm. Sub. |
SB73 |
|
|---|
| CBD Subject: |
Agriculture |
|---|
|
FUND(S):
General Revenue Fund, Local Governments
Sources of Revenue:
Other Fund Local Property Tax
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to clarify that certain solar generation facilities are not considered “farm property” or “agricultural operations” for purposes of agricultural production and taxation.
The bill, 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 |
2026
Increase/Decrease
(use"-") |
2027
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The bill, 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
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov