Court: Columbia Gas Transmission should be taxed at higher rate
Thursday, February 14, 2008
The Ohio Supreme Court on Thursday rejected an attempt by Columbia Gas Transmission Corp. to reduce the property taxes the natural gas pipeline company pays to local governments and local school districts in the counties where it has operations in Ohio.
The court unanimously ruled that under the state's property tax laws, Columbia Gas is an "interstate pipeline company" whose property should be assessed at an 88 percent rate, rather than a "natural gas company" whose property is assessed at 25 percent of actual value. The case involved taxes that Columbia Gas has paid from the 2000 tax year to the present.
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The court's 7-0 ruling affects Columbia Gas and at least a dozen other natural gas pipeline companies which have paid approximately $200 million in Ohio property taxes since 2000. Had the court ruled for Columbia Gas, the company would have been allowed to recover the difference between the taxes it paid during those years and what it would have paid at the lower rate.
Columbia Gas serves about two-thirds of Ohio, including operations in parts of Warren, Montgomery, Greene and Clark counties. It provides gas pipeline transport services for Vectren Energy Delivery of Ohio Inc., the primary natural gas supplier in the Miami Valley. Columbia Gas operates 4,000 miles of pipeline in Ohio, part of its 12,000-mile pipeline network in 10 states.
The court's ruling upheld arguments by Ohio's tax commissioner. Columbia Gas had appealed the commissioner's ruling and won a favorable decision from the State Board of Tax Appeals. The court, however, rejected the tax appeals board's finding and upheld the tax commissioner's position.
Columbia Gas is disappointed by the court's ruling, spokesman Kelly Merritt said.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
