Kansas Agencies Wrangle Over Pipeline Taxes

By: AP posted by Carissa Fox
By: AP posted by Carissa Fox

KANSAS CITY, Mo. (AP) _ 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 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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