Loving County Appraisal District v. EXLP Leasing LLC (Per Curiam)Annotate this Case
In this case concerning where taxes on compressors were due, the Supreme Court affirmed in part and reversed in part the judgment of the court of appeals, holding (1) Tex. Tax Code 23.1241 and 23.1242 controlled the taxable situs of the compressors at issue; and (2) Midland County was the taxable situs of the compressors.
EXLP Leasing owned and leased out compressor stations used to deliver natural gas into pipelines. In response to a 2012 amendment to the Tax Code, EXLP began paying taxes on the compressors located in Loving County to Midland County. Loving County continued placing the compressors on its appraisal rolls at full market value, asserting that the compressors’ presence within the counties fixed taxable situs there. The appraisal review board sided with the county. The trial court agreed with the county, concluding that sections 23.1241 and 23.1242 were unconstitutional. The court of appeals held (1) the statutes are constitutional, and (2) the compressors’ taxable situs is Loving County. The Supreme Court reversed in part, holding (1) sections 23.1241 and 23.1242 control the taxable situs of the compressors; and (2) Midland County is the taxable situs of the compressors.