Court rules on tax appeal authority in pipeline dispute

Trans-Alaska Pipeline System. (Photo by Alaska Department of Natural Resources)
Trans-Alaska Pipeline System. (Photo by Alaska Department of Natural Resources)

A rule that allowed governments and trans-Alaska Pipeline System owners to appeal taxes and avoid a public process has been invalidated by the Supreme Court.

The Fairbanks Daily News-Miner reports the Friday ruling says the volunteer State Assessment Review Board is the sole entity with authority to decide taxable parts of the oil and gas infrastructure.

Attorney Robin Brena argued on behalf of the city of Valdez, which has not signed onto an $8 billion valuation for the system that the Fairbanks North Star Borough and North Slope Borough agreed to.

Brena said appeals on taxability could take years to decide, creating uncertainty for municipalities. He said Valdez gets about 90 percent of its revenue from trans-Alaska Pipeline System property taxes.

The ruling won’t directly impact ongoing valuation lawsuits.

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