Ramapo Wins Tax Case In A Victory For Taxpayers

By: Daniel Friedman

The only municipality in Rockland County to help taxpayers by not raising property taxes has given yet another victory to town homeowners. The Town of Ramapo has won a lawsuit they filed against Millennium Pipeline, which will more than quadruple the amount of money they pay in property taxes.

Millennium Pipeline runs numerous underground high-pressure natural gas pipelines throughout Ramapo, delivering natural gas to those who use it. Though they own no major property, their use of town space is taxable. Millennium Pipeline operates similar underground operations throughout New York State, and has consistently fought to lower the valuation of their systems to pay less property tax to the municipalities they have a presence in.

In other places in the state, such as Buffalo, where property values have crashed, the company gets away with paying very little in taxes. However, in Ramapo, Supervisor St. Lawrence demanded that this company pay their fair share in property taxes. St. Lawrence argued that with the rise in living and building costs, pipelines in Ramapo should be taxed in line with homeowners in Ramapo, and not in line with pipelines elsewhere in the state, where property is far cheaper.

Supervisor St. Lawrence took his case to the New York State Office of Real Property Taxes. Laying out his arguments, the department reviewed the case, and determined that the taxable value of Millennium’s gas pipelines in Ramapo was $38 million. Previously, the pipelines were valued at $9 million. Consequently, Millennium will now see their Ramapo tax bill rise more than four times, resulting in an additional $500,000 in tax revenue for Ramapo.

This victory benefits not only the Town of Ramapo, but taxpayers, who will now bear less of the tax burden. However, though the state’s decision is certainly a success, it is not the end of the fight.

Phil Tisi, assistant to Supervisor St. Lawrence, told The Advocate that the town would push for an even higher valuation. “We think it’s still too low,” he said of the $38 million valuation. The town has now hired new counsel who will push for higher appraisal, so that the town will earn even more tax revenue from the company.

This is far from the first victory that Supervisor St. Lawrence has enjoyed over a utility company. In the past, he has fought against Orange & Rockland as well as United Water and others, for rate increases, service interruptions, and any perceived injustice against consumers.

“The supervisor has been a leader in fighting against outrageous increases in utility costs,” Tisi said. “I don’t understand why more officials aren’t fighting against them.”

 
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  • Friday, February 26, 2010 5:06:26 PM Tax payer wrote:
    By taxin a corporation "taxpayer" NEVER win. This corporation is here to make money and if they have to pay more taxes they will forward it to us. I don't know what these pipelines carry, but whatever it is that product will go up. Yes I agree everybody should pay their fare share in taxes and now they pay it but we all know there are much more corporations or ... That shoul start paying property taxes.
    Reply to this

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