Last night, the House and Senate OK'd a public finance bill filled with several local tax provisions. Among them is provision that would take money away from schools districts with wind turbines and instead give it to townships. Otherwise, beginning July 1 all of that wind tax money for schools would have gone into the state coffers.
The state's wind energy production tax currently divvies up the money as follows: 80 percent to counties, 14 percent to townships and 6 percent to schools. Wind farms pay this tax in lieu of property taxes. But the Minnesota Department of Education and lawmakers backed a law change in 2007 that would strip that money away from schools beginning July 1, 2009.
Getting the wind tax money restored for schools has been a tough sell — especially among metro area lawmakers without wind turbines in their districts. But the winds appeared to be changing this session, with more support for keeping the wind tax local — see this early blog post.
Austin area lawmakers ended up negotiating a compromise with DFL leadership to have the school money go to townships.
Rep. Robin Brown, DFL-Austin, said that while she had hoped to be able to get that money back for schools, she is thrilled that it will at least be staying in the area. She said this compromise makes it less likely the wind tax revenue will get picked off in future years.
"I really think that had it stayed at 6 percent directly to schools, it would have been vulnerable over the years," she said. "I really think that the dollars are probably much safer."
The bill still needs the governor's signature.
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