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Court denies request to rethink pipeline ruling

Published on -5/18/2012, 2:12 PM

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TOPEKA, Kan. (AP) -- A state appeals court has refused to reconsider a decision that lets Calgary-based TransCanada avoid paying nearly $19 million in property taxes for 2011.

KCLY (http://bit.ly/Ms3173 ) reports the Court of Tax Appeals on Wednesday denied a Kansas Department of Revenue request that it rethink an earlier ruling that TransCanada's Keystone pipeline met requirements under a 6-year-old exemption.

Kansas lawmakers passed the tax exemption in 2006 when TransCanada was exploring the route through Kansas. The law included income tax credits, financing and a 10-year property tax exemption.

The Revenue Department argues the pipeline doesn't provide refineries in the state with proper access to the pipeline's oil. The court ruled the law doesn't require direct access and doesn't specify how the refineries are to get the oil, which they do receive.

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