en HB 1131 – Revenue share assessment option for localities | NCRE

HB 1131 – Revenue share assessment option for localities

For further details regarding this bill, please visit: https://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1131

To date, the revenue contributed from a solar farm to a given locality has primarily come in the form of real estate and property taxes. A third, less common source, could include proffers which accompany some applications and are limited to specific impacts directly related to the location or development of a project.

HB 1131 gives localities the option to affix a flat-rate tax of up to $1400 per megawatt (AC) for prospective solar projects. According to the Virginia Association of Counties, “The energy tax option may provide more revenue than the current 80% mandated exemption, but that depends on the size and specific local tax rates.” Consequently, this bill improves financial discretion for localities by ensuring they can negotiate to maximize potential revenue from solar development. Note that this bill is identical to SB 762.