The Ohio Department of Taxation has denied bids by NEXUS Gas Transmission and Rover Pipeline to lower their tax bills.
Both pipelines ship natural gas from the Utica and Marcellus shale regions to markets in Canada and across the United States.
NEXUS and Rover appealed the Department of Taxation’s valuation of their pipelines last year.
County auditors use state valuations to set tax collections for school districts, townships, library districts and other entities.
Based on the state’s valuations, the Rover and NEXUS pipelines, combined, were projected last year to generate $20 million in extra revenue in Stark County and lower the rates on levies with set dollar amounts.
But the owners of the pipelines said the assessments were too high.
The 36-inch-diameter NEXUS pipeline crosses northern Ohio, including Stark, Summit, Wayne, Medina and Columbiana counties. NEXUS is a partnership between DTE Energy and Enbridge.
The state set the taxable value of NEXUS near $1.4 billion, but the owners argued for a taxable value closer to $996 million. The owners said building the pipeline cost $2.6 billion, $400 million more than planned.
Rover follows a path a few miles south of the NEXUS route. Rover consists of twin 42-inch-diameter pipelines, plus connecting lines, that traverse Stark, Carroll, Tuscarawas, Harrison, Wayne, Ashland and Richland counties.
Energy Transfer Partners, Blackstone Group and Traverse Midstream Partners own the pipeline.
The owners sought to cut Rover’s taxable value from $3.5 billion to about $1.85 billion. The owners said the pipeline went $2 billion over budget, costing $6.2 billion.
Tax Commissioner Jeffrey A. McClain denied the appeals of both pipelines on July 10. The companies have 60 days from that date to appeal to the Ohio Board of Tax Appeals. The issue ultimately could land before the Supreme Court of Ohio.
NEXUS is studying McClain’s decision.
“While the valuation has been under review, (NEXUS) has continued to make payments on the full undisputed portion of the tax bill based on the payment schedule in each county,” pipeline spokesman Adam Parker wrote in an email. “We understand the uncertainty that this process, along with the current uncertainty caused by coronavirus, has created around budgeting and planning and we are committed to reaching a mutually agreeable and timely resolution.”
A message seeking comment was left Friday with a representative of Rover .