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.
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.
