« HB 1246 will be decided in the House on Tuesday | Main | House Bill 1155 the Anemometer Tower Marking Bill approved by the House »
House Bill 1246 was defeated; oil pipeline companies will enjoy huge tax breaks
By Jason | February 23, 2010
My conscience is clear. I made every effort to ensure that the taxes paid by oil pipelines would be retained in the State Treasury. House Bill 1246 is a bi-partisan piece of legislation and has been an enjoyable experience to hold accountable a foreign company who plans to build their oil pipeline regardless.
House Bill 1246 received fair discussion on the Floor of the South Dakota House of Represenatives today. Unfortunately, members of the House decided to continue to further allow oil pipeline companies to enjoy large tax rebates. The House voted 32 in favor and 36 against HB 1246. All of the House Democrats and eight Republicans joined with me to agree that oil pipelines do not deserve a sales and contractors excise tax rebate.
Below are the three main points that I stressed in encouraging support for HB 1246:
– Geography of South Dakota is the reason why the pipeline travels through our State
– Subsidy to a foreign company
– Only 10 permanent jobs in the Midwest created
- $38 Million tax rebate
- Emergency Clause
- Good protection for our State
- TransCanada told us in committee that they don’t have all of their costs defined
- Does not affect Keystone 1 the first pipeline
- Incentive was given
- Price/oil fluctuation
- Last week oil went up 3%
- 3% of $900 million is $27 million
- Will we see the pipeline move to other states?
- Million dollars a mile to install
- Other State taxes
- Wyoming – 5% property tax as a part of income whereas
SD is 2.7% - Nebraska – 3.6% property and a corporate income tax (if anything they would want the pipeline to stay in SD longer
- Wyoming – 5% property tax as a part of income whereas
Topics: Uncategorized | No Comments »
Comments
You must be logged in to post a comment.