Railroads Lose Challenge to State Diesel Tax
(May 25, 2017)
- According to a release from the ATA, on April 12, a United States District Court determined that Tennessee’s sales tax on diesel fuel was applicable to interstate railroads.
The ruling states that in instances where railroads argued impermissible discrimination under federal law, the entirety of a state’s tax system had to be considered, not merely whether one transportation mode paid the particular tax being challenged and another did not.
The decision relied upon a recent U.S. Supreme Court ruling that dismissed a similar challenge to a diesel tax by interstate railroads in Alabama.
The entire ATA release can be found here