LETTERS: Pipeline and taxes
This is an update concerning property tax being promised to the six Kansas counties the Keystone Pipeline passes through.
Legislators and Keystone have repeatedly told the counties just to be patient, and after 10 years they will start receiving taxes from the pipeline.
The reality is far different, and I feel the counties involved are being systematically misled about this issue. For tax determination, the value for the pipeline is based on a state-appraised value provided to the counties. The county appraisers have no role in this determination.
The appraised value of the pipeline has declined precipitously in just two years. Marion County just received the valuation for 2013.
- 2011: $21,171,668.
- 2012: $17,784,097.
- 2013: $13,875,655.
As you will note, the pipeline has lost 34 percent of its original state assessed value due to accelerated depreciation after only three years. After 10 years, there will be little if any tax value remaining.
Keystone also has said this is a 100-year pipeline and the counties will be paid property taxes for up to 90 years. If you do the math — 90 x 0 = 0 — you will note that hopes for the future are nothing but a pipe dream.
County Commissioner Dan Holub