Data supporting Tax Calculations
Calculating taxes paid by average Mason County Farmland Acre
Assumptions
| $119,818,147 | Assessed value for farmland |
| $795.01 | Average Assessed farmland value per acre (Assessed value / total acres) |
| $0 | Tangible Personal Property value / current farmland acre |
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 |
This $8.56 payment from an average acre of farm land is divided as follows
| Tax District | Tax rate / $100 | |
| ————- | Real Property (Land) | Amount Due on a $795.01 Acre |
| School Board | 0.4560 | $4.34 |
| County | 0.2290 | $1.80 |
| State | 0.1220 | $0.97 |
| Health | 0.0750 | $0.60 |
| Library | 0.0670 | $0.53 |
| Extension | 0.0400 | $0.31 |
| ————- | Tangible Personal | Amount Due ($0 Tangible / Acre) |
| County | 1.4180 | $0 |
| State | $49.50 | $0 |
| ————- | Current Farmland Total TaxPayments | ———————————– |
| Local Districts | $7.58 | |
| State | $0.97 |
Calculating taxes due on Mason County Solar Acre
Assumptions
| $650 | Annual Solar Lease rate paid to the landowner (net income)/ acre |
| 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 |
First determine valuation of solar farm’s real property (land)
KY Dept of Revenue sways valuation of a utility-scale solar acre is determined 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 |
Some may debate Local Tax District Income from Taxes on Tangible Assets
For new economic development, such as solar, Kentucky sometimes negotiates lower tax rates on tangible assets. In addition, because the tangible assets depreciate, tax revenue on tangible assets decreases over time.
This table shows increase revenue even if Mason County Solar projects pay NO local tax on their tangible assets.
