PIERRE, S.D. (KELO) — Legislation that would expand South Dakota’s pipeline tax to cover carbon dioxide moved forward Wednesday.
The House of Representatives approved HB 1120. The legislation calls for the state Department of Revenue to centrally assess the taxable value of a CO2 pipeline and would tax the company’s other property such as real estate in each county.
“It doesn’t change the tax rate. It doesn’t change the distribution or anything like that,” Representative Kirk Chaffee, R-Whitewood, said.
The pipeline tax currently applies to transporting or transmitting gas, gasoline, oils, or motor fuels.
The vote was 65-3. The bill now heads to the Senate.