Written by: Stuart Chirls, Senior Editor A U.S. District Court Judge in Alabama dismissed a lawsuit by CSX alleging a state tax on diesel fuel discriminated against railroads. The opinion March 29 by Judge Abdul Kallon found that the railroad’s business practices were at the heart of the case and that the state tax did not violate the Railroad Revitalization and Regulatory Reform Act of 1976. CSX first sued over the tax in 2008, and the case has twice been heard by the U.S. Supreme Court. Alabama law requires railroads to pay a 4% tax on diesel fuel sales while trucking and barge companies are exempt. CSX in its suit contended the suit was discriminatory. The decision could cost CSX as much as much as $10 million in back taxes, according to a local report. Continue reading...
