The Morning Journal (Lorain, OH)
Nexus continues attempts to reduce pipeline tax bill
School districts could feel effects, official says
Lorain County is in the midst of a dispute with Nexus over attempts by the company to devalue pipeline infrastructure which has troubled local officials.
Lorain County Commissioner Matt Lundy said Feb. 3 a move by Nexus in challenging the value of its natural gas pipeline could have a devastating impact on local school districts with reduced tax revenue.
Attempts by the company to reduce the valuation from an original assessment of $127 million down to around $50 million is a problem, Lundy said.
The Ohio Department of Taxation reduced the company’s assessment to $111 million, he said.
“But the big part of their presentation was tax dollars that were going to come into Lorain County because of the value of that pipe in that system,” he said. “And I’m disappointed to see that once again, Nexus is back at the table in the state with the Ohio Department of Taxation seeking Reduced values and lower values.”
“The sad part is that these kinds of fights can go on for years, and while the fight goes on for years, the company can make the assertion that they’re only going to pay what they think the value is.” — Lorain County Commissioner Matt Lundy
Under the proposed plan, Lorain County alone could lose $955,000 in annual tax revenue with local school districts taking big revenue hits.
Firelands Local School District would lose $606,200; Keystone Local Schools; $915,000; Midview Local Schools would drop $882,000; and Oberlin City Schools is set to lose over $1 million annually.
This an economic impact that Lundy says will hurt schools and communities.
“The sad part is that these kinds of fights can go on for years, and while the fight goes on for years, the company can make the assertion that they’re only going to pay what they think the value is,” he said. “So, this is going to have a very negative impact on our schools and on our communities.” Lundy encourages residents to write to their legislators and tell them the concern and the impact it will have.
The Nexus Gas Transmission is a 256-mile natural gas transmission pipeline that crosses through parts of Michigan and Ohio, including Lorain and Medina
counties.
Lundy previously called the actions by the company a “bait and switch” stating it has not held up its end of the bargain in the commitments made to Lorain County.
The pipeline has been operational since 2018 following fierce opposition from the city of Oberlin.
In a previous statement to The Morning Journal on the pipeline assessment in December 2019, Nexus spokesperson Adam Parker said the company was committed to paying a “fair and justified tax.”
“Consistent with how individuals, homes and businesses are taxed, our property tax assessment should reflect the true market value of the pipeline,” Parker said. “After reviewing the preliminary assessment, we have elected to file a petition for reassessment through the formal process established by the Ohio Department of Tax.
TAX DOLLARS
These school districts could lose tax dollars: Firelands Local School District would lose $606,200; Keystone Local Schools; $915,000; Midview Local Schools would drop $882,000; Oberlin City Schools is set to lose over $1 million annually.
“Nexus is committed to paying a fair and justified property tax based on the true market value of the pipeline,” Parker said, “and looks forward to developing future economic and taxing opportunities in Ohio.”