Kan. court upholds Keystone pipeline tax ruling

Published on NewsOK Modified: April 26, 2013 at 4:03 pm •  Published: April 26, 2013

A State Department report has cleared the way for a final decision on the pipeline, which will transport oil extracted from Alberta tar sands more than 1,700 miles to refineries on the Gulf Coast. The pipeline would carry an estimated 800,000 barrels of oil a day.

Kansas legislators passed the property tax exemption in 2006 when Calgary-based TransCanada was exploring the route through Kansas. The law was designed to encourage energy projects in the state and included income tax credits, financing and 10-year property tax exemptions for such projects, including pipelines.

The Court of Tax Appeals said in its ruling in 2012 the law doesn't require the refineries to have direct access to the pipeline. The judges then noted the refineries are getting the oil indirectly, satisfying stipulations of the law.