An Excel spreadsheet property tax model has been created to explore the impact of the proposed Scandia project on property tax revenue for Mason and Oceana Counties.  (The model can also be applied to property tax revenue for Muskegon County, Ottawa County, or any county threatened by a wind factory.  To obtain a copy of the spreadsheet model email Steve Lewis.)

Scandia, in its most recent request for support from Mason and Ocean Counties, is proposing to pay these counties $1 million per year.   The model demonstrates that this payment is dwarfed by property tax revenue losses (following from reduced property values) associated with the Scandia project.

The model considers only lakefront lots along a 20 mile stretch of beach spanning parts of both counties.  The initial market value  of these properties is assumed to be $1 billon (fifty 100 foot properties per mile, each worth $ 1 million.)  The tax rate is set at 2.4%; the tax cap at 2%; annual market value increase at 6%; and one-time market value decline at 15%. 

Based on these reasonable assumptions, the impact on property tax revenue is startling.  Assuming a 10 year average holding period (homes turn over every ten years), over a  30 year period the average annual cost is $3.4 million ($102 million / 30).  Offsetting this loss with $1 million annual payments from Scandia still leaves an average annual NET loss of $2.5 million ($76 million / 30.)