Tax Classification of Industrial Wind Turbines
The development of numerous industrial wind turbine systems by Forest Hill Energy which is being sought within our beloved Clinton County has given us residents misleading information on the amount and distribution of taxes the wind turbine owner must pay.  As published, this developer is trying to convince taxpayers of our schools that turbine taxation will assist our schools.  However, the fact is these outside investors do not assist our schools since they do not pay the State Education Tax (SET) or the local school operating mills, which represents the two largest mills on everyone else’s property bills.  The developer wants you to believe that the turbines will pay for our schools but the real truth is listed below.

Tax Calculations

2008 Clinton County Equalization Department Report Millage Figures
Taxable value:  $1,250,000.00 published by the developer within Clinton County News (06/07/09)
The State Education Tax (SET) pays for our schools along with the school operating millage, which neither is paid by the wind turbine company!
Note: The correct amount is NOT $22,500.00 paid to our school per turbine.
 Twp. Bengal School  County  Twp  SET/CATS/CATA  School Operating  Library/Hold Harmless  School Debt  Interm. School 

Comm. College 
 Summer Levy Fowler 5.7068 0.00 6.0000 0.00 0.00 0.00  0.00 0.00
 Winter Levy Fowler 0.00 5.4805 .1986 17.3573 0.00  3.400 3.7579 0.00
 Turbine Owner Amount Summer $7133.50 $0.00 Exempt $0.00 0.00 0.00 0.00 $0.00
Winter $0.00 $6850.62 $248.25 Exempt 0.00 $4250.00 $4697.37 $0.00

This data represents the first year taxes only since the remaining years are figured on a declining value chart.

Refer to the following two tax forms: Personal Property Statement and Wind Energy System Report 
  • On May 12, 2008, the State Tax Commission determined that industrial wind turbines will be classified as Industrial Personal Property. 
  • The Commission believes that land on which the turbine is located should be classified without regard to fact that the turbines are on the property, unless the land is owned by the owner of the wind turbine and is not being used for any purpose other than as a wind turbine site. Obviously, the land is leased for the installation of these wind turbines here in Clinton County from managed farmers.
  • Public Act 38 of 2007 amended MCL 211.903, to exempt all property classified as Industrial Personal Property from payment of the State Education Tax (SET, 6 mills). Public Act 37 of 2007 amended MCL 380.1211 to exempt Industrial Personal Property from up to 18 mills of school operating millage. The exemption under Public Act 37 may be less than 18 mills if the school district's operating millage levied in 1993 was less than 18 mills. In that case, the exemption will be equal to that 1993 operating millage. This is similar to the treatment given under the Principal Residence Exemption, the Qualified Agricultural Property Exemption and the Qualified Forest Exemption.
  • On average, classification of personal property as Industrial Personal Property will result in a 65% reduction from the current personal property tax liability.
  • Assessors are again advised that nothing in the new laws merits any changes in classification of personal property. Meaning, if the land is zoned agriculture, the land stays agriculture. This further means, the land owner will make additional money from the installation of these industrial turbine devices on his land but will not pay an additional property tax to the community.
  • Industrial Personal Property also declines steadily for the first fifteen years and holds at 30% thereafter for property tax calculations. Meaning, the county and townships receive declining revenue each year for the other mills we have within this county.