The Buckingham County Board of Supervisors has scheduled a public hearing on Tuesday October 12 for a revenue sharing ordinance for the county’s solar farms.
At the board meeting on Monday, September 13, county administrator Karl Carter asked the board to hold a public hearing to pass an ordinance that would allow revenue sharing for future farms. solar.
Carter told listeners on Monday night that following increased interest across the county in developing solar farms, the board had previously appointed a solar committee to look at possible issues on the horizon.
When considering how the county could raise revenue from possible future solar projects, the committee explored two options.
Previously, Carter noted, the county’s main option for raising income from solar farms would have been the county’s machinery and tools tax. Through the tax, the State Corporation Commission could assess the value of the taxable equipment, and the solar entity would pay tax on that value.
The problem with this option is that solar farm equipment would depreciate over time, which in turn would reduce the amount of tax revenue the county could collect each year. The machinery and tools tax would also affect the County Composite Index, which could affect the funding of schools.
However, thanks to recent legislation, the county now has the ability to create a revenue sharing ordinance with respect to solar farms. The ordinance would not take into account equipment but instead would use a revenue sharing formula based on the size of the farm in which the county would receive $ 1,400 per megawatt (MW).
For example, in the case of a 130 MW solar farm, the the county would receive $ 182,000 in the first year.
Through revenue sharing, the county would not see any depreciation in revenue collected through the entity. In fact, the funds would increase over time.
In the case of a 130 MW facility, funds would increase by 10% every five years, resulting in a project that would bring in more than $ 10 million over a 40-year lifespan. The revenue sharing model will not affect the County Composite Index.
With the exception of District 7 supervisor Danny Allen, who was not present at Monday’s meeting, all board members approved the scheduling of a public hearing on October 12 on the potential ordinance. on revenue sharing.