On August 13, 2025, the Ohio Supreme Court unanimously upheld the decision of the Ohio Board of Tax Appeals (BTA) in valuing the Rover Pipeline. The decision is available on the Court’s website, Slip Opinion 2025-Ohio-2806. In short, the Court reviewed the expert witness testimony of both sides and determined that the BTA’s decision was not arbitrary, but appropriate under the facts and circumstances surrounding Rover’s construction.
Unlike the Court’s decision in Nexus, with Rover there is no settlement agreement being held in abeyance. Settlement negotiations between the Ohio Tax Commissioner and Rover only lasted a few weeks with no results. So, there is significant work ahead before local governments see revenue from the decision. The Ohio Department of Taxation and affected County Auditors will need to sort out the difference between Rover’s tender payments to date (to avoid penalties) and what it now owes, plus interest on the underpayments. The interest rate applied varies since it is set by the Department of Taxation annually.
There is no basis for a further appeal to the US Supreme Court since the question at issue was Ohio law on pipeline valuation. This was a prompt decision given that the oral argument in the case was just held June 4. OASBO joined an amicus brief, along with Napoleon City Schools and other local government trade associations, that urged the Court to make a decision quickly. The Tax Commissioner’s counsel referenced that amicus brief in concluding its oral argument. It appears the Court took note.