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Rail News: CSX Transportation

Judge dismisses CSX lawsuit over Alabama fuel tax


A U.S. District Court judge has dismissed a lawsuit this week that said the state of Alabama does not discriminate against railroads by requiring them to pay a diesel fuel sales tax while trucking and barge companies are exempt.

CSX and three other railroads contended in 2008 lawsuits that Alabama's 4 percent diesel fuel tax on railroads was discriminatory because the state exempts motor and water carriers from paying the tax, according to a report on

On Wednesday, U.S. District Court Judge Abdul Kallon issued a decision that said the state did not violate the Railroad Revitalization and Regulatory Reform Act of 1976. He dismissed the lawsuit by CSX, which has been through the federal court system, including the U.S. Supreme Court, for nearly a decade.

CSX is reviewing the court's decision and considering other options, CSX Manager of Media Relations Laura Phelps told in a prepared statement.

The three other railroads' lawsuits have been stayed pending the outcome of CSX's lawsuit, according to the news report.

Contact Progressive Railroading editorial staff.

More News from 3/31/2017