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Policy: Environment & Energy

Court: Tax on Vermont nuclear plant might be OK

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Associated Press,Taxes,Appeals Courts,Vermont,Energy and Environment,Law

NEW YORK — A New York federal appeals court says the legality of a tax on Vermont's only nuclear plant is best left up to a state court. But it shot down some of the plant operator's arguments against the tax anyway.

The 2nd U.S. Circuit Court of Appeals in Manhattan ruled Tuesday. The case stems from a tax affecting the Vermont Yankee nuclear plant.

The plant, which began operating in 1972, is run by the New Orleans-based Entergy Nuclear Operations Inc.

The company has argued that the electricity tax is unconstitutional and is not really a tax.

The appeals court said it is a tax and Vermont state courts can decide constitutional issues.

The appeals court has yet to rule on a challenge to the nuclear plant's right to operate.

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