U.S. Supreme Court holds Alabama's sales and use tax may be challenged under the Federal Railroad Revitalization and Regulatory Reform Act

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The U.S. Supreme Court held in a 7-2 decision that a rail carrier may challenge Alabama's sales and use taxes that apply to rail carriers but not to other transportation providers as discriminatory under the federal Railroad Revitalization and Regulatory Reform Act of 1976 (the "4-R Act"). The 4-R Act restricts the ability of state and local governments to levy discriminatory taxes on rail carriers. [CSX Transportation, Inc. v. Alabama Department of Revenue, 562 U.S. (2011)]


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