Tenn. Diesel Tax Would Spur More Lawsuits, Railroads Say

Law360, New York (February 26, 2014, 3:27 PM EST) -- A railroad industry representative told Tennessee lawmakers on Wednesday that freight railroads would likely sue the state again if the legislature approves a measure that would swap the current 7 percent sales tax on diesel fuel — which has been challenged in court — to a flat excise tax.

Speaking during a House of Representatives committee hearing, Tennessee Railroad Association Executive Director Tausha Alexander signaled that her industry would oppose any plan to levy a new tax on railroads. The legislature is considering the change after...
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