Oklahoma’s wind industry is stepping up to the plate in the growing debate of raising taxes to fix the state’s government budget crisis.
It has announced support of a plan to increase tax revenues from wind-generated electricity to $50 million.
“As in year’s past, the Oklahoma wind industry againn recognizes the State’s recurring revenue problem and seeks to be a partner in developing its solution,” said OK WindPower Executive Mark Yates in an email announcement to every State Representative and Senator. “The recurring battle between the oil and gas industry and the wind industry must cease for the benefit of the State of Oklahoma and our citizens.”
Option No. 2 proposes an Electricity Generation Facility Tax of $2,000 per “Mega
Watt Nameplate Capacity” payable every year to the state Tax Commission.
“The nameplate capacity tax on all generation, offset by a corresponding reduction in ad valorem at the local level, replicates the treatment oil and gas receives on its gross production tax,” stated Option No. 2 “This would generate more than $50 million in stable revenue for the State of Oklahoma.”
It would also exceed the $15 million outlined in the current proposal.
“The wind industry wants to come to the table with solutions. These solutions create parity among all of the energy providers and ensures the wind industry is not burdened with a double tax,” said Yates. “It is a fair and equitable solution.”
But the Wind Industry informed legislators it would like to see forward-looking tax proposals so investors and Oklahoma’s business reputation “are not further damaged. Retroactivity jeopardizes existing contracts and binding agreements and is detrimental to the State’s future business development efforts.”
OK WindPower also wants to avoid any kind of double-taxation for Wind “just as it doesn’t exist for any other energy or electricity.”
The group also wants a recognition that all incentives for Oklahoma Wind power have ended.