Dominion says property tax payments from Atlantic Coast Pipeline would exceed $25 million a year
Richmond-based Dominion said Monday that the Atlantic Coast Pipeline project will eventually create more than $25 million in local property tax payments per year. Dominion will build and operate the natural gas pipeline, a $5 billion project which is pending regulatory approval.
The pipeline would stretch 550 miles through West Virginia, Virginia and North Carolina. The joint venture includes Duke Energy, Piedmont Natural Gas and AGL Resources.
“The local benefits of the Atlantic Coast Pipeline for the host communities — including new property taxes paid by the pipeline — will be very real and very significant,” Diane Leopold, president of Dominion Energy, said in a statement. “At a time when many local governments are challenged to fund schools and provide other essential services, this new revenue can make a big difference.”
Although the project has received support, including that of Gov. Terry McAuliffe, it also has drawn opposition.
“Dominion's proposed pipeline is the wrong energy choice for Virginia. It will negatively impact the agricultural, cultural, and natural resources in the region, especially water,” says an online petition on MoveOn.org titled Gov. McAuliffe: Stop the Atlantic Coast Pipeline. The petition, created by Nancy Sorrells, co-chair of the Augusta County Alliance, has been signed by more than 2,400 people.
According to Dominion estimates, property tax payments may begin as early as 2016 once construction of the pipeline is approved by federal regulators and installation begins as the Atlantic Coast Pipeline joint venture spends dollars on construction-related costs. If approved by federal regulators, construction will begin in 2016 and the pipeline is projected to be in service by late 2018.
Dominion predicts annual property tax payments will increase during the construction period, based on tax formulas in each state and locality. Dominion estimates that counties and municipalities along the proposed route would receive $23 million in property tax payments in 2020 and increase to more than $25 million starting in 2021, when the full value of the project is ultimately reflected in tax payments.
The energy company says that the property tax estimates are based on the latest available tax rates and assessment ratios by each county and are subject to change. Changes in the construction schedules for the pipeline also may affect the amount and distribution of the property tax payments in any given year, Dominion says.
Chmura Economics & Analytics in Richmond projects that the pipeline would inject an annual average of $456.3 million into the economy of West Virginia, Virginia and North Carolina. The venture would support about 2,900 annual jobs in the region from 2014 to 2019, Chmura Economics & Analytics says. When fully operational, the project’s estimated annual impact in the three-state region would be $69.2 million, supporting 271 regional jobs from 2019 and beyond.