The Kentucky Court of Appeals held that Marathon Pipeline, LLC’s (“Marathon”) underground pipeline is tangible personal property for Kentucky property tax purposes, not real property. Department of Revenue v. Marathon Pipeline, LLC, No. 2021-CA-0626-MR (Ky. App. May 13, 2022) (designated not to be published). The Court affirmed the decision of the Franklin Circuit Court, which had in turn affirmed the decision of the Kentucky Claims Commission (“KCC”). Marathon is a public service corporation (“PSC”), and the pipeline transports crude oil to a refinery for processing and manufacturing into gasoline and other products. The pipeline is located in an activated foreign trade zone, and tangible personal property located in such zones was taxed at a highly favorable rate.

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