One clause of our tax abatement agreement states that "County authorities shall not...assess additional taxes...or change the classification of property....because of the existence of the project...during the period of the tax abatement."

The Tax Appraisal District has sent notices to all property owners who have a turbine that one acre per turbine shall be taxed as industrial where it was formerly ag. In trying to talk with the Chief Appraiser, her response was that "all the other counties are doing it", and that it is only fair. The wind companies, of course, are making breach of contract noises.

It is my understanding that this clause in the abatement agreement is not unusual; if the appraiser is correct, neither is her action.

What are the rest of you doing on this?

Lisa L. Peterson
Nolan County Attorney

Things like that is why people hate government.

Does the appraiser's new policy have anything to do with this?

Texas Attorney General opinion creates uncertainty for wind energy developers

An opinion recently issued by the Texas Attorney General appears to call into question the ability of county governments to grant property tax abatements for wind energy generation equipment. ...citing case law, the opinion observes that "[f]ixtures and improvements owned by the owner of real property are also real property, but ordinarily improvements owned by a lessee of real property are personalty." Therefore, the opinion concludes that since the fixtures and improvements in the situation at hand were owned by the developer and not the land owner, the improvements are personalty and are not eligible for an abatement under Section 312.402(a)."

For more from this article, click on the link above; for a copy of the opinion, click the link below.

AG Opinion No. GA-0600

That opinion is the basis for a nasty lawsuit in Taylor County between some folk who didn't want the abatements granted and the county; the wind companies are intervening

This is supposedly based on some provisions of the tax code which "require" an immediate change in the classification of property.

I think I can weasel through this if I can show that the Central Appraisal District is not a "County Authority". Does anyone have anything on that?

Lisa L. Peterson
Nolan County Attorney