The Ministry of Finance is proposing amendments to Ontario Regulation 282/98 that will alter the property tax treatment of certain renewable energy installations for the 2011 tax year. A summary of the proposed changes can be found in the table below.
The amendments will only apply to ground-mounted solar, wind and anaerobic digestion facilities where generation is ancillary to the main activity on the property. The aim is to reduce any disincentive property taxes may pose to individuals who are not ordinarily in the business of generation.
Consistent with current treatment, land, buildings and structures used for ground-mounted solar and wind facilities operated by entities whose primary business is generation will continue to be taxed at the industrial rate. Additionally, there is no change to the fixed rate applicable to ground-mounted wind turbines over 10kW: they will continue to be assessed at $40,000 per MW of installed capacity. As such, the amendments are meant to build upon the existing regulatory framework and establish greater clarity by creating additional categories for assessment based on the size and location of generation.
The Ministry is currently seeking public comment until August 29, 2011. Individuals wishing to do so may submit comments directly from the Regulatory Registry web site by clicking here:
Click here to view the table.