WASHINGTON — The U.S. Supreme Court has declined to hear a tax case involving CSX Transportation and the state of Alabama for the third time — a decision Bloomberg News calls a partial win for both parties.
The court rejected petitions by CSX and the Alabama Department of Revenue on Monday. That means a 2018 decision by the Eleventh Circuit appeals court stands. It found that Alabama was discriminatory against railroads because it requires them to pay state sales tax plus local taxes on diesel fuel purchases, while barges carrying interstate cargo are exempt.
The state will now face an order to fix the problem. It can end its taxing of railroads, losing at least $5 million a year in revenue, or similarly tax the barge industry — which will likely bring its own suit arguing the state cannot tax interstate commerce on a federal waterway, Bloomberg’s report says.
