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Will Keystone Pipeline Pay Its Fair Share?

November 6, 2009

moneyStill thinking through what happened this week in Pierre during the Keystone XL proceedings at the South Dakota Public Utilities Commission so have been light on posting.

In the meantime, you might be interested in reading about what is happening in Kansas in regard to the Keystone pipeline. It appears that a deal was struck with TransCanada in the state legislature to exempt the pipeline from paying property taxes. The counties are not happy about it and are concerned that roads damaged by pipeline construction may not be restored. A Kansas online paper has also raised concerns.

There does not seem to be a similar property tax situation in South Dakota. However, TransCanada executive Robert Jones testified in 2007 that the company could receive a $13.5 million dollar tax refund from the state of South Dakota, amounting to  75% percent of the sales tax it would pay on the Keystone pipeline. (The .pdf document at the link above is not searchable. Go to page 6 of 10.)

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