Alabama - Sales tax on rail carrier’s diesel fuel purchases discriminatory in violation of federal act

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In a 2-1 decision, the Eleventh Circuit US Court of Appeals found that Alabama’s sales tax violated a federal act precluding tax discrimination against rail carriers because their purchases of diesel fuel were subject to the tax while similar purchases by competitors such as motor and water carriers were exempt. While this decision is specific to rail carriers, it remains instructive for challenges of current or potential future federal laws that prohibit discriminatory state taxation. [CSX Transportation, Inc. v. Alabama Department of Revenue, No. 2:08-cv-00655-AKK, 11th Cir. (7/1/13)]


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