Data supporting Tax Calculations
|$650||Annual Lease rate (net income)/ acre paid to the landowner|
|$11,000||Tangible Personal Property value / solar farm acre|
• Above ground transmission power lines/wires/poles and related equipment
• AC switchgears, Meters, Breakers, Control Switches, Regulators
• AC Above Ground & Underground Cables & Connectors
• Security Systems,Communication Equipment
• Computer systems, monitor & control systems and SCADA systems
Mason County KY’s 2019 average property tax per farmland acre
|Total acres considered farmland||150,712|
|Total annual Property Tax from farmland||$1,289,962|
|Average Tax from a farmland acre (Total Tax from farmland / acres considered farmland)||$8.56|
Calculating Property tax due on Mason County Solar Acre
First determine valuation of solar farm’s real property (land)
Valuation of a utility-scale solar acre is determine based on the income approach.
- The income approach is a real estate valuation method that uses the income the property generates to estimate fair value.
- It’s calculated by dividing the net operating income by the capitalization rate.
- 650 / 0.07 = $9,285.71
Next, we calculate the annual amount due to each tax district
|Tax District||Tax rate / $100|
|————-||Real Property (Land)||Amount Due on a $9,285.71 Acre|
|————-||Tangible Personal||Amount Due ($11,000 Tangible / Acre)|
|————-||Solar Total Tax|