How will Minnesota benefit from Line 3 in terms of property taxes?

In addition to being a key part of Minnesota’s energy infrastructure, Line 3 is also an important part of the economy in many counties and communities along the right-of-way.  Things like pipelines, power lines and other utilities pay taxes to the counties and communities where they pass through.

Replacing the existing Line 3 with a new line will increase the line’s value and as a result, create increased property tax revenue for local governments.  This means the project will have a significant, lasting positive impact for communities along the Line 3 replacement route.

Enbridge currently pays more than $30 million in property taxes annually across Minnesota for pipelines and related facilities such as terminals, storage facilities, and pump stations. These property taxes will increase by approximately $19.5 million annually, beginning in the first full year that the Line 3 replacement is in service.

In some counties, Enbridge is the largest taxpayer where economic challenges exist.  This makes the pipeline and its future even more important.

These taxes will directly benefit communities along the route, providing extra funding for schools, infrastructure, and other important services. Paul Gerde, the chair of MN Rural Counties and Pope County Commissioner explains these positive impacts:

“Pipelines have become controversial in recent years, but largely lost in all the back and forth between individuals and groups that support or oppose this project and others like it, is that pipeline property tax revenues are the foundation for many rural county budgets, and they ease the burden on individual home owners and small business owners who pay the freight for county services.

At a time when the limited resources of counties across Greater Minnesota are being stretched thin from growing concerns related to opioid and eldercare abuse, an aging and increasingly isolated population, and endless unfunded mandates, pipeline revenues have supported law enforcement, human service and transportation infrastructure programs that have improved and saved lives. It is not an overstatement to say, pipeline revenue is lifeline revenue to many counties of the state.”

The Line 3 replacement project will benefit communities along the route with jobs and an economic boost during construction, but also with important funding for years to come.

Additional Information:

The Truth about Line 3 

With so much information being shared and gathered about the Line 3 replacement project, it’s important to help everyone stay focused on the facts, address any misconceptions, and make sure that information about Line 3 is grounded in truth.

Minnesotans for Line 3 has identified some common questions about the project along with information, facts, and other background that answer those important questions.