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Developer asks DeSoto Parish to withdraw tax bill, citing CWIP exemption
Summary
An attorney for Louisiana Energy Gateway LLC asked DeSoto Parish jurors at a public hearing to withdraw a six‑figure assessment on pipe stock, arguing the pipeline materials were construction work in progress (CWIP) and exempt under the Louisiana Constitution; jurors pressed for details on storage, timing and legal advice.
Will Hugay King Miller, speaking on behalf of Louisiana Energy Gateway LLC, asked the DeSoto Parish Police Jury to withdraw a large property tax assessment tied to pipe stock used for the Louisiana Energy Gateway pipeline project.
Miller told jurors the assessment (no. 2401378627) was issued on Jan. 1, 2025, but said the project was not placed in service until “about a month or two ago,” and argued that, under the Louisiana Constitution (Art. VII, §21), construction work in progress (CWIP) is exempt from taxation until placed in service. “CWIP or construction work in progress is exempt from taxation,” Miller said, adding that the materials at issue were incorporated into a project and were not a pipe yard or for resale.
Jurors and the DeSoto Parish assessor pressed Miller and other speakers on where the pipe had been stored and whether long-term storage converted the materials to taxable inventory. One juror asked, “If it wasn't on the location, then, how are we to know that it's actually pipe for the construction?” Multiple residents described seeing large quantities of pipe stored in Mansfield for two to three years, and another speaker noted frequent truck traffic bringing pipe in prior years.
Miller acknowledged there had been litigation and delays and said he believed FERC had ruled in favor of the pipeline, permitting the project to proceed. He reiterated the legal position that, until materials are incorporated and the project placed in service, they should be exempt, and said his client would pay taxes under protest if necessary and pursue a refund through the usual process. “We're being improperly taxed for this pipe that was incorporated in a project that was in place in service this year, and it should have been taxable this year,” Miller said.
DeSoto Parish officials did not take formal action during the public hearing. County counsel and jurors indicated they would seek legal advice on whether the assessment should stand and noted the possibility of refunds and protests if the assessment proceeds. One juror summarized the panel’s immediate position: unless advised otherwise by legal counsel, no action was required of the jury that night and the item remained in the public hearing/comment stage.
Next steps: Jurors indicated the matter may be followed up administratively with the assessor’s office and legal counsel; no vote or resolution was adopted at the hearing.
