At stake is whether the courts establish a new precedent for how the individual states can tax interstate commerce and the financial implications to oil and gas companies could be substantial.
Dallas, Texas (PRWEB) March 10, 2010
John Brusniak, Jr., a highly regarded commercial property tax attorney and managing shareholder of Brusniak|Blackwell PC, was a featured speaker at last week's Texas Oil and Gas Association (TXOGA) Conference in San Antonio.
In Brusniak's remarks, he alerted executives from the oil and gas industry to the emergence of three crucial cases working their way through the courts in Texas and Oklahoma. The cases contest a crucial legal question of whether states have the authority to impose property taxes on oil and gas that comes inside their state borders via interstate pipelines. The outcome of these cases could determine whether oil and gas companies are subject to hundreds of millions of dollars in potential tax liabilities to various states, particularly those in the Southwest region, where a large volume of oil and gas originates and is transported by way of interstate pipelines.
The three cases are: The Peoples Gas, Light, and Coke Co. v. Harrison Central Appraisal District (270 S.W.3d 208), which is currently on appeal in the Texas courts; Midland Central Appraisal District v. BP America Production Co. (282 S.W.3d 215), which is also on appeal in Texas; and Missouri Gas Energy v. Schmidt (U.S. Case No. 08-1458), in which the U.S. Supreme Court just denied certiorari last week.
"The legal issues being contested in these cases are dramatic and their outcomes should be closely watched by executives at oil and gas companies nationwide," said Brusniak. "At stake is whether the courts establish a new precedent for how the individual states can tax interstate commerce and the financial implications to oil and gas companies could be substantial."
Brusniak|Blackwell PC is a boutique law firm with one mission: solving commercial property tax issues for property owners throughout Texas. The firm provides a unique combination of legal services and tax consulting to its clients, offering a comprehensive range of strategies and solutions. Their team of property tax professionals provides a seamless process from beginning to end, working with clients from diverse industries and varied property uses including office, retail, hospitality, shopping malls, and personal property (aircraft, equipment, vehicles, etc.). With property valuations coming as soon as late April, business owners should work closely with their tax advisers and consultants to ensure a timely and successful strategy is in place.
For more information, please go to http://www.txtax.com or call 800.583.9829.