If lawmakers in Wyoming are to consider a wind energy tax increase in 2018, it won’t come from the Wyoming Legislature’s Joint Revenue Committee.
That committee killed a motion on Tuesday to reintroduce a proposal that would increase taxes on wind energy production in the state.
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CHEYENNE – If lawmakers in Wyoming are to consider a wind energy tax increase in 2018, it won’t come from the Wyoming Legislature’s Joint Revenue Committee.
That committee killed a motion on Tuesday to reintroduce a proposal that would increase taxes on wind energy production in the state.
Leading up to that decision, Sen. Cale Case (R-Lander) had moved to reconsider his previously struck down proposal to increase the wind tax by 400 percent, from $1 per megawatt hour to $5.
Wyoming is home to one of the best on-shore wind resource locations in the U.S., and economists estimate revenue potential for investment at around $10 billion in coming years. It could be a game changer for places such as Carbon County, where developers have massive wind farm plans in the works. And while developers and others argue increased taxes on wind energy production could drive away investment, Case said Tuesday he’s not buying it.
Given the placement of power grids in the eastern and western U.S., Case said Wyoming is uniquely situated to yield the best wind energy product for customers in western states. As more transmission infrastructure becomes available, he argued Wyoming would be irresistible to developers. Additionally, Wyoming doesn’t have a corporate income tax, so Case said the state would still have a more appealing tax climate for investors with his proposed increase.
Though the state’s revenue picture has improved in 2017, Wyoming is still struggling through its latest economic downturn tied to the mineral industries. Those industries account for around 70 percent of its revenue, resulting in a repeating boom-and-bust cycle. Because of how the state taxes mineral exports, Wyoming taxpayers receive a disproportionate level of services to their own burden.
Case said the wind production tax would work much in the same way, where the burden would be passed to customers out of state. The committee punted on unpopular sales and property tax proposals Monday, so it stands to reason it could be an appealing argument.