Liquified carbon dioxide that flows through future pipelines in Iowa would be taxed under a bill (SF 2069) advanced Wednesday by a Senate panel.
Pipeline companies would pay the tax, and revenue would be added to the state’s Taxpayer Relief Fund. The tax rate would be lower for carbon dioxide used to extract oil.
Kathy Carter, a landowner from Floyd County who’s opposed to the Summit Carbon Solutions pipeline, said the bill is a distraction.
“It’s taking away from the issue of the property rights and the eminent domain,” she said. “It’s a pat them on the head, make them feel good gesture. Throw Iowans a bone and they’ll shut up. Plain and simple, that’s all it is.”
The Iowa Renewable Fuels Association said taxing carbon capture projects now would risk harming the industry’s growth before it has a chance to be established. Sen. Dan Dawson, R-Council Bluffs, said revenue from taxing carbon pipelines could be a public benefit for Iowans.