HONESDALE -- The owner of 43 windmills towering over the western Wayne County landscape was hit with a tax bill of more than $347,000 Tuesday after an appeals board ruled portions of the devices are subject to local levies. The decision by the Wayne County Assessment Appeals Board, which could be appealed to the county court by owner Juno Beach, Fla.-based Florida Power and Light Energy, could result in the dismantling of the windmills. The company hinted last week that if the windmills were taxed it might pull the plug on the operation and close the wind farm.

FPL Energy has not paid taxes on the windmills during the appeals process. During Tuesday's meeting, the board assessed the total value of the windmills at $11.6 million, or $269,800 each. The board ruled that while some components of the windmills are tax-free, energy producing equipment, other components are not free of tax. Each of the concrete bases the windmills are perched on and all 43 of the 215-foot high towers that the turbines are attached to are real estate and do not manufacture electricity, the board determined. If the assessment stands, FPL Energy would owe two years' worth of taxes to Clinton and Canaan townships, Wayne County and the Western Wayne and Forest City Regional school districts. With the new assessment, the potential tax windfall would be greatest for the Western Wayne School District. It would collect $134,579 in 2005 taxes and $153,136 in 2004 taxes. Thirty-nine of the windmills are within that district's boundaries. In 2005 taxes, Wayne County would collect $24,708, Clinton would reap $2,482 and Canaan would receive $2,698. Taxes for 2004 would also be levied. The bill for Forest City Regional was not immediately available. The unanimous decision comes after several deliberations were held among board members following an assessment appeals hearing last Thursday. The appeals process began last summer when FPL Energy challenged the tax assessments of its windmills. During last week's hearing FPL Energy officials claimed the windmills and all adjoining components were tax exempt under a state law that rules energy producing or manufacturing equipment is nontaxable. Mary Wells, a spokeswoman for FPL Energy, said she had not received official notification of the decision and declined comment. According to figures company officials testified to, the Waymart wind farm has the capacity to generate revenues of $7 million per year. Expenses run about $6.5 million per year, they said.

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Note : Local taxes render wind facility uneconomical.