Daily Tax Report: State

Court Tosses $2.6 Million Tax Assessment Against Union Pacific

Oct. 8, 2019, 10:33 PM

The Union Pacific Railroad Co. can ignore a $2.6 million tax bill from Wisconsin after a federal appeals court ruled the state improperly denied a tax exemption for the value of the rail company’s computer software.

The U.S. Court of Appeals for the Seventh Circuit found the Wisconsin Department of Revenue violated the federal Railroad Revitalization and Regulatory Reform Act of 1976, the 4-R Act, when it imposed certain ad valorem taxes on the software. The law bars states and municipalities from imposing discriminatory taxes against a rail carrier.

“Wisconsin’s intangible personal property tax singles out railroads as part of...

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