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SB 3166

Ad valorem tax assessment; direct DOR to assign separate industrial multiplier for commercial solar and wind facilities.

2025 Regular Session Introduced by Josh Harkins

SB 3166 directs DOR to assign a separate industrial property tax multiplier for commercial solar and wind facilities, creating a distinct tax class with value tied to multiplier.

Approved by Governor
#finance #waysandmeans
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Bill Summary · SB 3166

Summary — SB 3166 (2025)

Status: Approved by Governor (became law 2025-03-27)
Introduced: 2025-02-24
Subjects: Finance; Ways and Means

Purpose

SB 3166 directs the state Department of Revenue (DOR) to assign a separate "industrial" ad valorem tax multiplier specifically for commercial solar and wind facilities. The bill’s intent is to create a distinct property‑tax treatment category for these renewable energy installations by separating them from other industrial property for the purposes of calculating taxable value.

Key provisions

  • Directs the Department of Revenue to establish and assign a separate industrial multiplier that applies to commercial solar and wind facilities for ad valorem (property) tax assessment purposes.
  • Creates a distinct classification (or subclass) for commercial solar and wind facilities separate from other industrial properties when applying the multiplier used to convert assessed values into taxable value.
  • Implementation details (exact multiplier rate, procedural rules, definitions of “commercial” solar and wind facilities, effective assessment dates) will be determined/implemented by the DOR consistent with the statute.

Note: The bill text provided does not specify a numeric multiplier, definitions, or an explicit effective date beyond standard enactment; these operational details are left to DOR action and any accompanying rulemaking.

Who is affected

  • Owners and operators of commercial-scale solar and wind energy facilities: their property-tax calculation basis will be governed by the newly assigned separate industrial multiplier.
  • Local taxing authorities and school districts: changes in classification or multiplier could shift taxable value and therefore alter local property tax receipts (up or down, depending on the multiplier set).
  • County and municipal assessors and the Department of Revenue: administrative processes, assessment forms, and guidance must be updated to accommodate the separate multiplier and classification.

Fiscal and administrative impacts

  • Revenue impact depends on the multiplier value that DOR assigns: a lower multiplier reduces taxable value (and tax revenue) for those properties; a higher multiplier increases it.
  • Administrative tasks for DOR and local assessors include establishing valuation procedures, issuing guidance, possibly rulemaking, and training assessors; there may be transitional issues in applying the new multiplier for the next assessment cycle following enactment.

Legislative and procedural history

  • Introduced: 2025-02-24 (referred to Finance; then Ways and Means)
  • Passed both chambers and enrolled in March 2025
  • Enrolled bill signed (3/19/2025); approved by Governor (3/27/2025) and enacted.

Implementation / Next steps

  • DOR must assign the separate multiplier and provide implementing guidance. Stakeholders (facility owners, local governments, assessors) should monitor DOR rulemaking and guidance to determine the multiplier value and the effective assessment year.

Compiled from official sources — confirm details with the bill’s official record.

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