County Weighs Data Center, Solar Project in Light of Shrinking Tax Base

As Young County officials study the financial implications of two major proposals—a multibillion-dollar data center project and the 300-megawatt Tapaderos Solar and battery storage development near Eliasville—they are also confronting a deeper structural challenge: the county taxes only about 30 percent of its actual market value.

With both projects promising hundreds of millions of dollars in potential taxable value, county leaders are trying to understand how such developments could reshape Young County’s long-term revenue picture. That question has become increasingly urgent as exemptions, special valuations such as the 1-d-1 (Open Space) Agricultural Use, commonly known as the “Ag Exemption,” and state-mandated caps continue to erode the tax base.

According to data compiled by Tax Assessor- Collector Jesse Blackmon, Young County’s total 2025 market value is $5.078 billion, but after applying agricultural valuation, homestead caps, disabled veteran relief, over-65 freezes, nonprofit exemptions, and other deductions, the county’s net taxable value falls to just $1.787 billion—a reduction of more than $3.29 billion from what exists in the real world.

“After all these deductions are made, you are essentially only taxing on 30 percent of the available value,” Mr. Blackmon said.

That limited base is what must sustain the adopted 2025 county tax rate of $0.58635 per $100, which generates Young County’s current levy of $9.98 million.

How exemptions shift the burden

Without any exemptions, the county would collect $28.99 million at the current rate.

Keeping today’s levy but removing exemptions would drop the tax rate to $0.20184—about onethird of today’s rate.

Removing only agricultural valuation (but keeping every other exemption) would more than double the county’s levy at the current rate, to $22.68 million.

Exemptions lower costs for some taxpayers, but shift that burden onto everyone else.

Mr. Blackmon warns that new statewide homestead exemptions—particularly the $125,000 school exemption now extended to all businesses— will cost county taxing entities more than $1.5 million in lost value, forcing tax rates upward simply to hold revenue steady.

“It just shifts the burden over and over again,” he said. “The value loss elsewhere erodes the tax base and effectively causes tax rates to increase just to keep the same revenue.”

Young County saw that volatility firsthand this year when the Young Wind Farm’s taxable value dropped sharply, hammering the budgets of Olney ISD and Olney Hamilton Hospital.

Why major projects matter

Because the county’s effective tax base—after freezes—is only $1.49 billion, the addition of a single large project can dramatically shift the tax landscape.

Mr. Blackmon estimates that adding $500 million in reliable taxable value from a data center, solar field, or similar project would: Raise the county’s effective base from $1.49 billion to $2 billion Lower the 2025 tax rate from $0.58635 to roughly $0.5000 Save the owner of a $200,000 home about $180 per year Country commissioners are scrutinizing both the Tapaderos Solar proposal and the separate multibillion-dollar data center project—not simply for job creation or economic activity, but because of their potential to reshape the tax base for decades.

Large projects can also concentrate risk. Data centers, wind farms, or solar installations may eventually represent such a large share of the tax base that sudden valuation drops, industry downturns, changes in ownership, or legislative changes could destabilize county revenues overnight.

Mr. Blackmon said that well-structured abatement agreements can insulate the county, guaranteeing predictable tax payments even if the market shifts.

“You are much better off having a long-term guarantee than just tossing it up each year,” he wrote.

As exemptions expand and state policies shift, smaller and smaller portions of property remain available to tax. Without new industry, counties must raise rates—or cut services— to maintain revenue.

Mr. Blackmon said Young County has an opportunity to reverse that trajectory.

“The only way we can really see some true relief in our local property taxes is with a major project like the data centers could be,” he said. “If things are done right… we just might have a chance to get things balanced out again.”