Court Rules Declares Ala. Fuel Tax Discriminatory

By: The Associated Press
By: The Associated Press

BIRMINGHAM, Ala. (AP) -- The U.S. 11th Court of Criminal Appeals has ruled that Alabama discriminated against railroads by making them pay sales taxes on fuel when competing trucking and barge companies weren't required to.

Reports say CSX was paying a 4 percent sales tax on diesel fuel purchases in Alabama while its competitors weren't required to pay anything.

The company filed a lawsuit in 2008 against the state Department of Revenue.

In a court opinion, officials said the state didn't offer good enough justification for exempting the company's competitors from paying the tax.

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