Pure Pierre Politics

The House Taxation Committee just voted 12-2 to recommend passage of legislation that would take away the sales-tax and contractor-tax refunds for pipelines. The prime sponsor is Rep. Jason Frerichs, D-Wilmot. TransCanada lobbyist Dennis Duncan said the change could cost the company an estimated $38 million more in taxes on the estimated $900 million construction expenses for building its proposed second pipeline, known as Keystone XL, through western South Dakota. Frerichs said the legislation, HB 1246, doesn’t attempt to stop the refunds which TransCanada is already eligible to receive for its first pipeline, known as Keystone, which has been built down the James River valley through South Dakota. A turning point in the hearing today (Thursday) came on the issue of jobs. Duncan said TransCanada expects to have about 10 employees permanently centered in South Dakota. Legislators looked at 10 jobs versus $38 million in tax refunds. The state Public Utilities Commission is scheduled to decide this afternoon on whether to grant a permit for construction and operation of the XL pipeline, as well as the conditions in the permit.