Data supporting Tax Calculations
Assumptions
| $650 | Annual Lease rate (net income)/ acre paid to the landowner |
| 7% | Capitalization rate |
| $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 | 158,080 |
| 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 |
| School Board | 0.4560 | $50.70 |
| County | 0.2290 | $21.26 |
| State | 0.1220 | $11.33 |
| Health | 0.0750 | $6.96 |
| Library | 0.0670 | $6.22 |
| Extension | 0.0400 | $3.71 |
| ————- | Tangible Personal | Amount Due ($11,000 Tangible / Acre) |
| County | 1.4180 | $155.98 |
| State | $49.50 | $49.50 |
| ————- | Solar Total Tax Payments | ———————————– |
| Local Districts | $244.84 | |
| State | $60.83 |
