The Matanuska-Susitna Borough wants to tax a natural gas liquefaction plant operated by the Interior Gas Utility in Fairbanks. The IGU is fighting it.

Titan Alaska LNG is located at Point MacKenzie in Southcentral Alaska and is the source of liquified natural gas that is trucked to Fairbanks.

The Interior Gas Utility acquired the plant as a component of the Interior Energy Project, which aims to increase natural gas availability in Fairbanks and North Pole.

The plant was last subject to taxation in 2015 when it was owned by a private company. After the Alaska Industrial Development and Export Authority purchased the facility, it qualified for a tax exemption. Then AIDEA sold the plant to the IGU.

“That exemption has been removed for 2020, as the Interior Gas Utility is a public corporation, and a taxable entity,” stated a Dec. 4, 2019, letter to the IGU from the Mat-Su Borough Division of Assessment.

The IGU is a subsidiary of the Fairbanks North Star Borough. The utility’s board of directors met Tuesday and discussed the letter. The IGU’s lawyer is working on an appeal, IGU General Manager Dan Britton said.

“We’re kind of evaluating our options and working through it,” he said.

Krista King, assessments record supervisor for the Mat-Su Borough, said a determination on the plant’s value is pending.

The last year it was taxable, in 2015, Kind said the plant was valued at $1.7 million and that $23,155.25 in taxes was paid. The IGU is planing a major expansion at the plant starting next year.

Contact staff writer Amanda Bohman at 459-7545. Follow her on Twitter: @FDNMborough.