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ARTICLE · 04 MARCH 2015

Supreme Court Decision Alert - March 4, 2015

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Today, the Supreme Court issued one decision, described below, of interest to the business community.

United StatesLitigation, Mediation & Arbitration

Today, the Supreme Court issued one decision, described below, of interest to the business community.

Railroad Revitalization and Regulatory Reform Act—Discriminatory State Taxation

Alabama Department of Revenue v. CSX Transportation, Inc., No. 13-553 (previously described in the July 1, 2014, Docket Report)

The Railroad Revitalization and Regulatory Reform Act of 1976 (the "4-R Act") prohibits States from imposing any "tax that discriminates against a rail carrier." 49 U.S.C. § 11501(b)(4). Today, in Alabama Department of Revenue v. CSX Transportation, Inc., No. 13-553, the Supreme Court held that a State may potentially violate this prohibition by taxing fuel purchases made by a rail carrier while exempting similar purchases made by its competitors. The Court further clarified that a tax is discriminatory only if the State cannot sufficiently justify differences in treatment between similarly situated taxpayers.

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