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SD 1159

An Act relative to the taxation of above ground conduits, wires, and pipes used in the transportation of natural gas

194th Legislature (2025-2026) Introduced by Patrick O'Connor

Eliminates exemption for above-ground conduits, wires, and pipes used to compress or transport natural gas, making these assets taxable property for affected corporations/LLCs.

House concurred
0
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Bill Summary · SD 1159

Summary – An Act relative to the taxation of above ground conduits, wires, and pipes used in the transportation of natural gas (Senate Docket No. 1159)

Purpose and intent

This bill aims to change how certain infrastructure used to transport natural gas is taxed in Massachusetts. Specifically, it eliminates a current exemption for above-ground conduits, wires, and pipes that assist in the compression or transportation of natural gas, bringing them within the scope of property taxation for the corporations or LLCs described in the relevant section of Chapter 59.

Key provision

  • Inserts a new sentence into Section 5 of Chapter 59 of the General Laws (after the word “1996” in line 298):
    • “Any conduits, wires and pipes that extend above ground and compress, transport, or directly assist with the compression or transportation of natural gas will not be exempt from taxation of the corporations or limited liability companies described in this section.”

In plain terms, above-ground components used in natural gas transport that may have previously enjoyed an exemption would now be taxable property for the affected entities.

Who is affected

  • Corporations or limited liability companies described in Section 5 of Chapter 59 of Massachusetts General Laws.
  • Owners and operators of above-ground conduits, wires, and pipes used to compress, transport, or assist in the transportation of natural gas.

Financial and administrative impact

  • Tax base: The above-ground natural gas transport infrastructure would become subject to local property taxes under existing framework, potentially increasing tax revenues for municipalities.
  • Valuation and assessment: Local assessors would determine the value of these assets as taxable property, subject to applicable tax rates and exemptions (as determined under current law).
  • No explicit dollar figures or rate changes are provided in the text; fiscal impact depends on asset valuations and local tax rates.

Legislative status and timeline

  • Introduced: January 15, 2025 (Senate Docket No. 1159)
  • House status: Concurred (February 27, 2025)
  • Post-concurring action: Referred to the Committee on Revenue (February 27, 2025)
  • Context: The measure appears to be a continuation or reintroduction of similar legislation from the 2023-2024 session (Senate No. 1917).

Notes

  • The bill focuses narrowly on eliminating an exemption for specific above-ground infrastructure associated with natural gas transport and does not address underground infrastructure or other types of utilities.
  • If enacted, affected entities should anticipate a reassessment of relevant assets and corresponding tax filings with local assessors.

Compiled from official sources — confirm details with the bill’s official record.

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