Kansas Court Upholds Keystone Pipeline Tax Ruling

By: AP (Posted by Melissa Brunner)
By: AP (Posted by Melissa Brunner)

TOPEKA, Kan. (AP) _ The Kansas Court of Appeals has upheld a ruling in 2012 by a state tax court affirming a property tax exemption for a Canadian company building the Keystone XL pipeline.

In a ruling written by Judge David Bruns, the appeals court ruled Friday that TransCanada was entitled to the property tax exemption because Kansas refineries have indirect access to the crude oil passing through the pipeline daily.

Six Kansas counties appealed the Court of Tax Appeals ruling last year, saying they were entitled to levy taxes against TransCanada because there was no direct access to the oil in Kansas.

Kansas counties impacted include Washington, Clay, Dickinson, Marion, Butler and Cowley.

The pipeline segment is part of the proposed Keystone XL pipeline that will extend from Canada to the Gulf Coast in Texas.

KCLY Radio contributed to this report.

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