Attachment 1 Tax Revenue

Transcription

1 Northeast Energy Direct Project Attachment 1 Tax Revenue December 2015

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3 Northeast Energy Direct Project Attachment 1.1 Methodology Utilized for Developing the Tax Revenue Amounts December 2015

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5 Detailed Analysis of the Property Tax Revenue Impacts Methodology Utilized for Developing the Revenue Amounts Methodology Used - Pennsylvania Valuation Tennessee Gas Pipeline Company, L.L.C. ( Tennessee ) used direct costs of buildings plus installation expenses. Personal property is not taxable. Tax Rates - Latest available mill rate compounded at assumed increase of 1% per year to year end Methodology Used New York Valuation - Tennessee used the New York State-Department of Taxation and Finance-Office of Real Property Tax Services-Year End 2014 Uniform Construction Index Base Cost Tables for 30-inch pipe, compounded at an assumed increase of 5% per year to year end 2018 x footage per town, x the county multiplier (from the UCI State Location Multiplier Sheet) x the town assessment ratio that results in the pipe assessed value. Valuation (Compression and Meter Stations) - Tennessee used direct costs and subtracted 15% for soft costs. Tax Rates - Latest available county, town, and school district tax rates (from 2014), compounded at 1 % per year until year end Methodology Used - Massachusetts Valuation - For limited liability companies, the Massachusetts Department of Revenue, Division of Local Services uses the unitary method of valuation; however, that division only uses the cost approach and income is ignored. First, a system cost is calculated by adding Utility Plant less Accumulated Depreciation, plus Construction Work in Progress, Gas Stored Underground-Current and Non-Current, and Material and Supplies. Next, the Massachusetts cost is calculated, which is the total of the following FERC Accounts Pipe, Compression, Meter Stations, Communication Equipment, and Machinery and Equipment -- plus Massachusetts-located CWIP for those same accounts. Next, the Massachusetts original cost is divided by System Utility Plant original cost. The resulting factor is then multiplied by System Net Plant, which calculates the Massachusetts Base Value (Assessed Value). Allocation to Towns - The formula to spread the above Base Value to the Massachusetts towns is as follows: Town miles x inch diameter of pipe x a depreciation factor based on pipe year in service. This formula calculates the allocation factor for each town to spread the statewide Base Value. Compression and meter station costs are also allocated by the same process, so each town receives part of the value. Tax Rates - Tennessee s current statewide average tax rate compounded at 1 % per year to year end 2018.

6 Methodology Used New Hampshire Towns New Hampshire Town Assessors use various methods to arrive at Replacement Cost New ( RCN ) Less Depreciation, which is considered to be market value. Many of the towns use a third-party appraiser to value utilities and public service companies. Valuation - Tennessee used an average 2015 RCN for 30-inch pipe and indexed that amount to year ending The full direct costs for the compressor station and meter stations were added to the towns where they are located. No deduction was taken for depreciation on pipelines, compressor stations or meter stations. Tax Rates - Tennessee took the latest available tax rates for each town and compounded at 1.5% per year to year end Methodology Used New Hampshire Department of Revenue-For Statewide Education Tax Valuation - The New Hampshire Department of Revenue uses the unitary method with a cost and income approach. The appraisal is weighted more to the cost approach. Tennessee estimated the New Hampshire plant in service costs less the first year s depreciation to arrive at market (assessed) value. Tax Rate - The fixed statewide education property tax rate is Methodology Used - Connecticut Valuation - Pipelines are required to report original costs on personal property to the town assessor. Tennessee used estimated the Connecticut plant in service costs x Connecticut schedule first year depreciation rate of 95% x the Connecticut assessment ratio of 70% to calculate Assessed Value. The Assessed Value was allocated to each town based on miles of pipe located in each town. The same formula was used for the meter stations. Tax Rates - The current available tax rates were compounded at 1% per year to arrive at year end 2018 rates. 2

7 Northeast Energy Direct Project Attachment 1.2 Detailed analysis of the property tax revenue impacts Pennsylvania December 2015

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9 NED West Supply-Nov Estimate for FERC Filing (REVISED) Station 319 Cooler Addition Property Tax Estimate - Bradford County Wyalusing Township 2014 Est Mill 2016 Est. Taxable Property Est. Cost 2015 Ratio Assessed Value Mill Rate Rate Tax New MCC Building $ 82, $ 26, $ 2, Labor $ 16, $ 5, $ Total $ 99, $ 31, $ 3, New Compression Property Tax Estimate-Susquehanna County New Milford Township 2014 Est Mill 2017 Est. Taxable Property Est. Cost Ratio Assessed Value Mill Rate Rate Tax Compressor Bldg $ 617, $ 213, $ 19, Aux. Building $ 96, $ 33, $ 3, Electrical $ 53, $ 18, $ 1, Labor $ 153, $ 52, $ 4, Total $ 921, $ 317, $ 29, Footnote: Ignore ratio as latest mill levys are effective rates Total Est. Increase in Property Tax = $ 32,820.68

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11 Northeast Energy Direct Project Attachment 1.3 Detailed analysis of the property tax revenue impacts New York December 2015

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13 NED West Supply State of New York-Property Tax Estimate 11/1/2015 NED-West Property Tax Estimate NED-West Property Tax Estimate Township County By Township By County Sanford Broome $1,895,606 $1,895,606 Broome Afton Chenango $323,277 $323,277 Chenango Davenport Delaware $2,055,975 Franklin Delaware $1,224,977 Harpersfield Delaware $483,484 Masonville Delaware $2,793,358 Sidney Delaware $1,386,683 $7,944,477 Delaware Cobleskill Schoharie $279,266 Jefferson Schoharie $404,959 Middleburgh Schoharie $496,715 Richmondville Schoharie $676,558 Schoharie Schoharie $1,388,799 Summit Schoharie $4,136,919 Wright Schoharie $692,539 $8,075,755 Schoharie $18,239,115 $18,239,115

14 NED East-Nov 2015 Estimate TENNESSEE GAS PIPELINE COMPANY, LLC State of New York-Property Tax Estimate Nov-15 Township NED Property Tax Estimate Wright $2,712,814 Knox $498,654 Berne $503,522 New Scotland $2,420,929 Bethlehem $2,836,526 Schodack $3,671,241 Nassau $893,898 Stephentown $989,301 $14,526,884

15 Northeast Energy Direct Project Attachment 1.4 Detailed analysis of the property tax revenue impacts Massachusetts December 2015

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17 NED East Market - Nov 2015 Estimate Property Tax By Massachusetts Township Hancock 696,486 Lanesborough 1,370,950 Cheshire 531,312 Dalton 938,743 Hinsdale 812,109 Peru 231,244 Windsor 1,307,633 Plainfield 1,527,865 Ashfield 1,965,578 Conway 938,743 Shelburne 346,867 Deerfield 1,475,560 Montague 1,282,856 Erving 770,815 Northfield 2,361,997 Warwick 311,079 Dracut 1,638,166 Andover 964,620 Tewksbury 486,714 Wilmington 493,322 North Reading 724,566 Reading 83,688 Lynnfield 640,878 Middleton 74,879 Peabody 396,419 Danvers 158,568 Methuen 818,532 Townsend 618,923 Lunenburg 421,195 24,390,307

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19 Northeast Energy Direct Project Attachment 1.5 Detailed analysis of the property tax revenue impacts New Hampshire December 2015

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21 NED East Market-Nov 2015 Estimate New Hampshire CORRECTED-Compression moved from Fitzwilliam to New Ipswich 12/09/2015 Township Town Tax Winchester $792,288 Richmond $932,317 Troy $300,610 Fitzwilliam $993,930 corrected Rindge $1,259,073 New Ipswich $2,998,827 corrected Greenville $236,274 Mason $501,460 Milford $511,767 Brookline $483,057 Amherst $409,266 Merrimack $808,294 Litchfield $296,587 Hudson $277,132 Pelham $681,227 Londonderry $291,951 Windham $293,452 Salem $189,269 Mason $323,870 Hollis $33,639 $12,614,290 corrected

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23 Northeast Energy Direct Project Attachment 1.6 Detailed analysis of the property tax revenue impacts Connecticut December 2015

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25 Tennessee Gas Pipeline Company, LLC NED East Market Nov 2015 Estimate Property Tax Estimate- 11/2015 State of Connecticut Bloomfield $1,758,786 East Granby $141,864 Farmington $61,269 West Hartford $1,113,513 Windsor $674,836 Stamford $5,137 Milford $11,753 $3,767,158 C:\Users\scheffelj\Desktop\Offline Work - To be Placed on Server\NED Pipeline\FERC Filings\Post-Application Supplemental Filings\Scoping Comments\Attachments\NED East-CT Towns-Nov 2015.xlsx

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27 Northeast Energy Direct Project Attachment 1.7 Ad Valorem Tax December 2015

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29 Tennessee Gas Pipeline Company, L.L.C. Northeast Energy Direct Project Ad Valorem Taxes-REVISED (PA) 11/09/2015; REVISED (NH) 12/09/2015 Summary Sheet 11/05/2015 MAXIMUM CASE-1.2 Supply/1.3 Market TGP NED-East (Market) 1st Year Property Tax Estimate Nov FERC Filing TGP NED-West (Supply) 1st Year Property Tax Estimate Nov FERC Filing Tax Basis Tax Amount Eff. Tax Rate Tax Basis Tax Amount Eff. Tax Rate CT $3,767,158 NY $18,239,115 MA $24,390,307 PA $32,821 NH-Towns $12,614,290 NH-State Education Dept. $7,874,870 NY $14,526,884 $0 $63,173,509 $0 $18,271,936 Project Cost Summary Market Path Project Costs Item State Directs All-In Multiplier 1 Connecticut CT $ 101,319 $ 140, Massachusetts MA $ 1,052,280 $ 1,457, New Hampshire NH $ 811,675 $ 1,124, New York NY $ 501,384 $ 694, Pennsylvania - Below Ground PA $ - $ - 6 Pennsylvania - Above Ground PA $ - $ - 7 Total $ 2,466,658 $ 3,417, Supply Path 8 Connecticut CT $ - $ - 9 Massachusetts MA $ - $ - 10 New Hampshire NH $ - $ - 11 New York NY $ 714,426 $ 996, Pennsylvania - Below Ground PA $ 491,602 $ 685, Pennsylvania - Above Ground PA $ 109,661 $ 152, Total $ 1,315,690 $ 1,834,

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31 Northeast Energy Direct Project Attachment 2 Viewshed Analysis of the Notchview Reservation December 2015

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