Maryland oil pipeline is not subject to real property taxes | Norton Rose Fulbright
The pipeline runs across Maryland on its way from Texas to New Jersey and is buried about 36 inches below ground. The pipeline company does not own much land in the state, but rather has easements from landowners over whose property the pipeline passes. The Maryland tax department tried to collect real property taxes, but a state court of appeals said no such taxes have to be paid in this case because the pipeline is considered “personal property” rather than real property. It is closer to movable equipment than a building. The court rendered its decision on September 9.
The case is Colonial Pipeline Company v. State Department of Assessments and Taxation.