Kansas court upholds Keystone pipeline tax ruling

In this photo from Sept. 29, 2011, ranchers Todd Cone, left, and Terry Frisch stand by a cattle watering circle where the Ogallala Aquifer water table is at ground level, in the sandhills near Atkinson, Neb., Thursday, Sept. 29, 2011. Cone said he still considers the Keystone XL pipeline a threat to the state's groundwater, but is too busy to keep fighting the project after it was rerouted away from near his property. Terry Frisch remains ardently opposed to the pipeline, even though the planned route has moved from near his property to about 10 miles away.(AP Photo/Nati Harnik)

TOPEKA, Kansas (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 south-central 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.

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

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