EXLP Leasing LLC and EES Leasing LLC v. Loving County Appraisal District
This ad-valorem tax case concerns the taxation of natural gas pipeline compressor packages. Appellants, EXLP Leasing LLC and EES Leasing LLC, lease these compressor packages. The trial court initially ruled that the packages qualified as heavy equipment but found the taxable situs in Loving County and deemed the statutory formulas for market value and tax (Texas Tax Code Sections 23.1241 and 23.1242) unconstitutional as applied. On appeal, the Court of Appeals addressed the constitutionality of these statutes and the determination of taxable situs. The appellate court reversed the trial court's finding on constitutionality, holding that the statutes are not unconstitutional as applied, and affirmed the trial court's ruling that the taxable situs was indeed in Loving County.