Property tax decision for Mongstad refinery is valid

When determining the property tax for the Mongstad refinery for 2019, the municipality included in the tax base a number of caverns – blasted-out mountain halls for storage of petroleum products – storage tanks and structures for shelter from wind and weather. The Supreme Court, like the Court of Appeal, found that this part of the property tax decision was valid. The starting point for the assessment is that property tax is a tax on immovable property, in contrast to production equipment and installations, which fall outside the tax base, see section 4 subsection 2 third sentence of the Property Tax Act. The caverns were clearly and undisputedly immovable property. The same applied to the tanks, although these were built on the ground and not blasted out. The other buildings in question had the typical primary function of buildings, namely to protect against weather and wind. They could not be described as production installations. The appeal against the Court of Appeal's judgment was dismissed.

Read the whole judgment (Norwegian only)

Area of law: Tax law. Section 4 subsection 2 of the Property Tax Act. 

Key paragraphs: 56, 59–60

Justices: Noer, Bull, Høgetveit Berg, Thyness, Hellerslia