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Pipeline Property Taxes Could Fill Highway Funding Gap

For nine rural counties in South Dakota, $17.8 million in new pipeline property tax revenue could be an answer to it’s highway funding problem. A study release from Pew Charitable Trust found there is not enough money to pay for upgrades or repairs to the nations highways.

Argus Leader:

South Dakota, which has more than 80,000 miles of highways, roads and streets, drew about 37 percent of its funds from the federal government and 63 percent from state and local sources, placing it among the highest in its federal share compared to other states but near the bottom when it came to state and local support.

The U.S. State Department estimates rural counties along the route of the planned Keystone XL Pipeline would collect $17.8 million in new property tax revenue after the pipelines first year of operation. A county could spend the money to repair its roads or highways.