|
|
|
Editor:
The controversy over global warming has brought wind and solar energy to the forefront in the methods of energy utilization. With the discussion naturally emerges the subject of taxation. Wind and solar are sometimes thought of as free energy, but in reality, all sources of energy are free and their occurrence is a matter of location. Most of our sources of energy are from the sun so are free. It is the utilization of these forms of energy, which involves the cost. Oil, gas and coal are as free as the wind and solar but the cost involved is from transforming them to a usable form. Oil, gas, and coal involve the use of the land on which they occur but so do wind and solar.
Wind and solar power have to be on land in a certain location, at which conditions are right, therefore the owner of that land becomes the owner of that portion of the energy developed. From this point the imposition of tax becomes similar to that of other sources. The price of the energy can be compared to other sources and becomes relative.
Wind and solar are generally thought of as pollution free but they are not because the production of facilities to utilize the energy involves a considerable amount of energy from other sources. After installation, they also have to be maintained.
Oil, gas and coal are taxed to help pay for the services required for the people necessary to produce these substances. The energy from wind and solar is sold to users and so it becomes a taxable transaction.
The major demand for "clean" energy is from environmentally orientated states such as California who do not want our "dirty coal energy" so they should be prepared to pay a premium for this clean energy which causes an impact on our state. We have no form of business tax so the only avenue is to place a gross tax on the value of the energy produced.
DON THORSON, Newcastle