N. Border Pipeline Co. v. S.D. Dep’t of Revenue

The South Dakota Department of Revenue assessed Northern Border Pipeline Company, the operator of an interstate pipeline that provides transportation services to natural gas owners who desire to ship their gas, for use tax on the value of the shippers’ gas that the shippers allowed Northern Border to burn as fuel in compressors that moved the gas through the pipeline. An administrative law judge affirmed the assessment. The circuit court reversed, holding that Northern Border’s burning of the shippers’ gas was exempt from use tax under a tax exemption. The Supreme Court affirmed, holding that because Northern Border did not own the gas, use tax may not be imposed under this Court’s precedents. View "N. Border Pipeline Co. v. S.D. Dep’t of Revenue" on Justia Law