Reeves County Appraisal District v. MidCon Compression, LLC

In this case challenging where taxes on compressors were due, the Supreme Court affirmed in part and reversed in part the judgment of the court of appeals, holding (1) Tex. Tax Code 23.1241 and 23.1242 controlled the taxable situs of the compressors at issue in this case; and (2) there was no basis to remand the case to determine whether taxable situs in Loving and Reeves counties was proper under the governing statutory provisions.MidCon Compression owned and leased out compressor stations used o deliver natural gas into pipelines. Some of those compressors were in use in Reeves and Loving counties. In response to a 2012 amendment to the Tax Code, MidCon began paying taxes to Ector and Gray counties. Reeves and Loving counties continued placing the compressors on their appraisal rolls at full market value, asserting that the compressors’ presence within the counties fixed taxable situs there. The appraisal review boards agreed with the counties. The trial court also sided with the counties, concluding that sections 23.1241 and 23.1242 were unconstitutional. The court of appeals held (1) the statutes are constitutional, and (2) the compressors’ taxable situses are Reeves and Loving counties. The Supreme Court reversed in part, holding that sections 23.1241 and 23.1242 control the taxable situs of the compressors. View "Reeves County Appraisal District v. MidCon Compression, LLC" on Justia Law