Pumped Storage Project could dramatically boost local tax revenues
Annual taxes from GCPSP could increase revenue for Gregory and Charles Mix counties, and for the Burke and Platte-Geddes school districts
Energy projects are emerging across America as a new growth industry for rural areas. One of the most important aspects of this phenomenon is what it means for local property taxes.
The Gregory County Pumped Storage Project (GCPSP), if built, could positively change local government budgets with a dramatic increase in tax revenue.
In advance of a broader economic outlook study, which will start in spring 2023, we have provided estimated annual tax revenues for Gregory and Charles Mix counties, and the Burke and Platte-Geddes local school districts, to be realized once the GCPSP is complete. These estimates are based on the current tax levies and budgets, along with the estimated value of assets that would be built in the counties and school districts.
For Gregory County, where the assets of GCPSP would include the upper reservoir and the powerhouse, the estimated tax revenue would be an additional $3.3 million annually. Based on the county’s 2021 budget of $8.1 million, this would be a 41.5% increase.
For the Burke School District, the estimated tax revenue is $11.1 million per year. With the district’s 2021 budget of $4.6 million, this would be an increase of 240%.
In Charles Mix County, where the assets of the GCPSP would be a substation and transmission line, the estimated tax revenue for the county would be $1.5 million per year, or an increase of 10% over the 2021 budget. The Platte-Geddes School District would receive tax revenues of $3.3 million per year, or an increase of 50% over the 2021 budget.
These figures represent annual revenues each year for the life of the project, or the next 80-100 years.
Energy is one of the most important growth industries for rural communities today, providing jobs and economic stability to improve the quality of life for everyone.
The GCPSP provides an opportunity to improve services while lowering the tax burden on local residents. These dollars could also be used to offer additional school programming, provide technical job training opportunities, or provide incentives for young families to come back to work and live in their own hometowns.
In the coming months, we will have more economic impact data to share, not only for Gregory and Charles Mix counties but for surrounding communities as well. As always, if you have any questions or comments, please reach out at GregoryCountyInfo@mrenergy.com.