By Sarah Doty

Post-Bulletin, Rochester MN 

The economic climate hasn't provided a whole lot of excitement or revenue for local communities in recent months, but there might just be a light at the end of the tunnel, wind energy advocates say.

Communities are eyeing relief that they could receive through a wind energy production tax.

The tax, established in 2002, is charged to wind farms for each kilowatt hour of electricity produced. The production tax takes the place of property taxes on the turbines.

The tax is distributed between the county (80 percent), cities and townships (14 percent), and schools (6 percent).

In recent years, both Mower and Dodge counties have benefited from the production tax.

2009 pay day

This year will be no different. Donna Welsh, Mower County's finance director, estimates Mower County will receive $861,387 from 186 towers. Lisa Kramer, finance director for Dodge County, estimates her county will see $13,528 generated from the 41 turbines in the county.

Olmsted County doesn't receive any wind energy production tax funds.

Welsh said Mower County has received the tax since 2005. But the $13,577 that they earned just four years ago is a drop in the bucket compared to the amount that will be received this year.

The exponential growth can be attributed to the recent rush to bulid turbines in Mower County -- 133 turbines were erected in 2008.

The exponential growth can be attributed to the recent rush to bulid turbines in Mower County -- 133 turbines were erected in 2008.

And the future looks promising, considering that most of the new turbines were only operational for a few months in 2008.

In Dodge County, the tax has also boosted revenue. Since 2004, the county has received $91,667 in wind energy production taxes.

Fillmore, Goodhue, Olmsted and Winona counties might soon join the ranks with projects proposed there as well; along with several more in Dodge and Mower counties.

'Inadvertent' oversight

Recent legislation, however, might take away the benefits of the production tax, unless it can be reversed, according to David Benson, Nobles County commissioner and legislative chairman for the Southwest Regional Development Commission.

In the 2008 legislative session, changes were made to limit levies for counties, which then classified the wind energy production tax as a general revenue.

That change meant the wind production tax was added to the counties' bottom line, which then meant that amount was reduced from their overall levy amount.

This change in legislation defeats the original purpose of the tax, Benson said, which was to provide the county with compensation for the use of their fire departments, medical services and roads.

"What we saw was a lot of construction activity and a lot of investment," said Benson.

"We had to provide roads for the big machinery that came in, we provided emergency medical services or fire, if there are any needs like that. Because of the costs we were seeing to the community, we needed some benefits."

That is where the tax came in. Now some counties stand to lose up to $1 million a year, Benson said.

"Local communities and counties and school districts aren't getting the benefit that we are entitled too," he said.

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