Pipelines paying taxes but on lower valuations

The Wood County treasurer’s office has received property tax payments from operators of the Nexus and Rover pipelines that reflect valuations of less than half of the valuations originally set by the Ohio Department of Taxation.
Both companies have appealed the initial valuations and will be paying taxes on valuations they put forth in their appeals until their cases are settled, Matthew Oestreich, county auditor, said.
Tax receipts in the county from Nexus totaled about $1.53 million and Rover paid about $9.7 million. The figures reflect taxes paid in the first half and both companies owe at least a portion for the second half of 2019.
“We’re actually glad they paid the lower (valuation) amounts rather than the full amounts, because, should the pipelines win, the difference would have to be paid back to them with interest,” Oestreich said. “And the entities would have to set aside that (extra) money and that affects your (school) five-year forecast. It also messes with the townships. It potentially puts them in another income bracket because township dollars are based on their budget. So, if you have this money you can’t spend but it is in your coffers that could affect your budget too.
“Potentially there are a lot of issues. We’d rather have it where, if the valuation comes in higher than what the pipeline sought, the interest would be paid by the pipeline company to all the local entities. So, if anyone is going to pay interest we would rather have it paid by the complainant. It’s definitely a win but we have to get settled on a (valuation) number that is hopefully palatable for all.”
Some of the jurisdictions in the county benefitting financially from the pipelines are:
-Eastwood schools are receiving about $531,558 from the half-year payment from Nexus, according to figures from the auditor’s office.
-The Penta County Joint Vocational School District is receiving about $69,917 from Nexus for the half-year and about $417,288 from the Rover pipeline.
-The Pemberville Library is receiving $12,237 from the Nexus pipeline.
-Webster Township is receiving $22,997 from the Nexus pipeline.
-Troy Township is receiving $60,320 from the Nexus pipeline.
-The Wood County District Library is receiving $37,285 from the Rover pipeline.
Dan Russomanno, treasurer of Woodmore schools, said Nexus has also filed a revised appeal to try to lower the valuation of its line in Sandusky County to about $22.65 million. In December, the company filed an appeal to lower the valuation from $48 million to $29 million.
At the lowest proposed valuation, the school district would receive about $922,072 annually, Russomanno added, while a valuation of $29 million would result in the district receiving about $1.18 million. Those revenue amounts don’t reflect what would be levied for two emergency property tax issues that collect fixed sums and a bond issue.