On February 27th and March 2nd, the House Taxation Committee held hearings on House Bill 2196, which would eliminate property tax exemptions for renewable energy resources and technologies in the 2009 taxable year.
“Renewable energy resources or technologies” include wind, solar, photovoltaic, biomass, hydropower, geothermal, and landfill gas resources or technologies. The Kansas Department of Revenue reported that House Bill2196 would increase property tax revenues by approximately $225,000. The bill also would have an effect on state expenditures for aid to school districts and increase revenues to local governments that levy property tax.
Proponents of the bill include the Kansas Legislative Policy Group, an association of thirty western Kansas counties. The group believes the incentive to bring wind farms to Kansas are no longer needed because our state is such a valuable wind resource, and counties should be able to tax them. Opponents include Wind Coalition, Clipper Windpower, Wind Capital Group, Gamesa, Tradewinds, Iberdrola, Empire Electric, Sierra Club, and the American Institute of Architects. These groups want to maintain the incentive in an effort to keep Kansas competitive with other states. The Kansas Rural Center was neutral on House Bill 2196 but believes there is a better way to tax. KRC suggests a production tax, instead of the property tax.