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Kansas Agencies Wrangle Over Pipeline Taxes

KSCB News - May 11, 2012 8:19 am

There’s disagreement in Kansas over

whether oil company TransCanada should be exempt from paying

millions in property taxes for the section of its Keystone pipeline

that moves oil through Kansas to Oklahoma.

The Kansas Department of Revenue wants the Kansas Court of Tax

Appeals to reconsider its decision to approve TransCanada’s 2011

property tax exemption.

The department estimates Calgary, Alberta-based TransCanada owes

nearly $19 million in 2011 property taxes for the pipeline that’s

been operating since last year. The department says the pipeline

doesn’t meet a requirement that Kansas refineries must have access

to the oil in order for TransCanada to get the exemption.

The Court of Tax Appeals, however, says the pipeline meets the

access requirement because Kansas refineries can get the oil from

facilities in Oklahoma.


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