Ala. Sales Tax On Railroad Carriers Biased, 11th Circ. Says
By Sindhu Sundar
Law360, New York (July 1, 2013, 9:29 PM ET) -- Two years after the U.S. Supreme Court allowed CSX Transportation Inc. to sue Alabama over its 4 percent retail sales tax, the interstate rail carrier emerged victorious when the Eleventh Circuit ruled Monday that the tax discriminates against rail carriers because it exempts motor and water carriers.
A three-judge panel reversed a lower court’s ruling and found that exempting such competitors from the sales tax but not CSX — which has to pay the tax when it buys diesel fuel in the state — is a...