Industry proposes the exact same tax treatment as Oil and Gas industry to create parity
(OKLAHOMA CITY, Okla) – Officials representing the Oklahoma wind industry sent a communication to all members of the Oklahoma House of Representatives and Oklahoma State Senate outlining taxation proposal options that would ensure the wind industry is taxed at the same level as Oklahoma’s oil and gas industry.
In an email to the legislature, OK WindPower Executive Director Mark Yates states, “As in year’s past, the Oklahoma wind industry again recognizes the State’s recurring revenue problem and seeks to be a partner in developing its solution. The recurring battle between the oil and gas industry and the wind industry must cease for the benefit of the State of Oklahoma and our citizens.”
The OK WindPower proposes the following two options for consideration:
–Option 1: The Wind Industry proposes the exact same tax treatment as the Oil and Gas industry to create more parity within the energy sector.
Equivalent to 4% GPT for 36 months and 7% GPT thereafter in lieu of ad valorem at the site of production, of which 3% of this revenue would return to the county/local level.
–Option 2: The Wind Industry proposes an Electricity Generation Facility Tax of $2,000 per “MegaWatt Nameplate Capacity” payable annually to the Oklahoma Tax Commission.
The nameplate capacity tax on all generation, offset by a corresponding reduction in ad valorem at the local level, replicates the treatment oil and gas receives on its gross production tax.
This would generate more than $50,000,000 in stable revenue for the State of Oklahoma. This results in Wind exceeding the $15,000,000 outlined in the current proposal while also providing parity among all forms of electricity generation.
“The wind industry wants to come to the table with solutions,” said Yates. “These solutions create parity among all of the energy providers and ensures the wind industry is not burdened with a double tax. It is a fair and equitable solution.”
Additionally, OK WindPower outlined the following positions on behalf of the wind industry:
–Request forward-looking tax proposals only so investors, and Oklahoma’s business reputation, are not further damaged. Retroactivity jeopardizes existing contracts and binding agreements and is detrimental to the State’s future business development efforts.
–Avoid any kind of double-taxation for Wind, just as it doesn’t exist for any other energy or electricity.
–Recognize that all incentives for Oklahoma Wind power have ended.
–Encourage the need for a stable investment climate in Oklahoma for all forms of energy and investment by suggesting the end of anti-wind organizations forever and a 2, 3 or 4 year moratorium on new taxes for all energy.
FOR MORE INFORMATION:
Sheila A. Curley, APR