Massive machinery. Oversized loads. Trenches everywhere. The Rover pipeline project underway in Ohio is difficult to miss. When completed, the pipeline will meander from West Virginia through Ohio and Michigan to Canada.
The undertaking has generated talk of additional money for schools, landowners, and other agencies. Rover will not be issuing direct payments to Triway. Instead, Rover will be taxed based upon the cost value of its project. The value, which is determined by the Ohio Department of Taxation, will be assessed taxes established by the millage of the affected agencies: local school districts, vocational schools, libraries, townships, fire departments, etc.
The cost value assigns a value to the property and is not a business revenue stream. Only pipes are being buried in the Triway district. Compressor stations, like the one being constructed at the corner of Route 30 and Elyria Road, will generate business revenue and be taxed accordingly. This station is not located within Triway Local School District.
There is an element of risk associated with the pipeline project. Taxes cannot be collected until the pipeline is operational. No gas flow; no property value. If, in the future, contributing wells run dry and the flow ceases, the tax assessments, too, will end. And, like other utility cost values, the Rover pipeline cost value is subject to a depreciation schedule of thirty years. This means the tax revenues gradually go away.
At this time, no cost value for the Rover pipeline has been set. Additionally, there is no official date of service. These factors are crucial in calculating potential tax revenues for Triway. Until the “unknowns” become “knowns”, the Rover pipeline benefits to Triway will be purely speculative.
For more information contact Superintendent Nate Schindewolf or Treasurer Sue Kruse at 330-264-9491.
Visit the Rover site: http://www.roverpipelinefacts.com/index.html .