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A push from Southwest Minnesota counties to change the way wind turbines are taxed is caught up in the controversy surrounding the state's budget deficit.

That's the bad news.

The good news is that the counties and wind-energy representatives agree on how to tax wind turbines.

Sen. Arlene Lesewski, a Republican from Marshall whose district covers most of the Buffalo Ridge, says she will have to do "some heavy lifting" in the coming days as she tries to convince members of her own party that she is not increasing taxes, nor are changes in the production tax for wind turbines part of a Democrat scheme to address the deficit.

"We have our tax bill attached to the tax bill that the Senate Democrats are putting together to send out of the finance committee," she said. "Now I have to convince the House Republicans that this is not a tax bill that deals with the deficit and is not part of that debate."

Both Lesewski and Rep. Richard Mulder, Ivanhoe, are Republicans. Mulder is carrying the bill in the House.

The 11-county Rural Minnesota Energy Task Force has been pushing for a different way to tax the generation of energy from the wind farms along the ridge. Task force member cite meager returns from the current taxing scheme, and they have been butting heads with wind industry representatives to forge a solution.

Members say a production tax would more fairly compensate counties' expenses for road wear and tear and other security and law enforcement expenses.

Lincoln County cited a 40 percent drop in income derived from taxes on wind turbines because of the way taxes were levied on them.

The counties have had limited success getting the Legislature's attention and in having representatives of the wind energy industry sit down at the table to discuss their concerns.

That is, until Lincoln County recently passed a 60-day moratorium on construction of wind turbines there.

The task force then placed items for action on moratoriums on the agendas of Pipestone and Nobles counties.

Although commissioners in Nobles and Pipestone counties failed to pass the resolutions, the wind industry took notice.

"They have called us and said they wanted to meet with us to discuss the issue," said Lincoln County Commissioner Jim Nichols. "Before, they wouldn't even talk with us."

Lesewski said that Lincoln County's action has brought industry representatives back to the table.

"If it hadn't been for Lincoln County passing that moratorium, we wouldn't have made the progress we've achieved," she said.

The senator said representatives from the 11 counties and energy representatives have hammered out an agreement on the amount of the production tax. Except for some minor details, both sides were satisfied with the bill, she said.

"Thanks to Lincoln County, we've pretty much got an agreement," she said. "Now, I've got to convince the House Republicans that it's not part of the Senate Democrats' efforts to raise taxes to address the deficit."

Worthington Daily Globe 2002

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