No Property Tax Penalties for Renewables

Immediate Release
June 18, 2007

MCGUINTY GOVERNMENT ENCOURAGES CLEAN ENERGY PRODUCTION
Fair and Predictable Property Taxes Benefit Ontarians

QUEENS PARK ─ The Ontario government today announced a new, more equitable property tax assessment for privately operated windmills.

“We want to ensure that the property assessment system doesn’t deter homeowners or farmers from taking steps to supply their own clean energy,” said Minister of Finance Greg Sorbara.  “That’s why we’ve developed a new assessment policy for residential and farm properties with wind turbine towers.”

The new policy ensures that owners of small, privately-operated wind turbine towers (500 kilowatts or less) used to generate electricity primarily for the owners use will have the land surrounding their tower assessed at a residential or farm rate, instead of at a higher industrial rate.

The new policy builds on the government’s 2004 decision, to develop a special assessment rate for wind turbine towers of $40,000 per megawatt of installed capacity.  This rate has successfully delivered a balanced and sustainable way of assessing this unique type of structure and contributed to an increase of commercial wind towers across the province.

“Today’s announcement reaffirms our government’s commitment to develop and foster green energy initiatives and to support Ontarians who make green investments,” said Liz Sandals, MPP Guelph-Wellington.  “By establishing fair and sustainable tax policies, we are encouraging clean energy production and ultimately, a greener Ontario.”

“Over the past for years Ontario has become a leader in developing positive renewable energy policies,” said Matthew Bulmer of AeroJoule Wind Energy for People and Municipal Councilor for the Township of Puslinch.  “This decision will help farmers and other rural residents benefit from the opportunities that have been created.”

Wind power is not the only clean and renewable source of energy.  The Province will be working with stakeholders to review the property tax treatment of all forms of renewable energy generation to ensure that assessment and tax policies align with energy policies and that clean, renewable energy production remains economically viable.

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For more information, contact:
Colleen Hogan
Office of Liz Sandals, MPP
(519) 830-4190

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