locked Taxed properties on the railroad


Cohen Bob
 

Question:

When a section of railroad is either unused or out of service (i.e. - Railbanked), are the taxes on the property of the railroad the same as when it is in service and deriving income and specifically taxes for services rendered along its road and if so at what rate/percentage difference?

Thank you.

Bob Cohen


Bill Schafer
 

I don’t know. I assume that if the RR was paying taxes on the line when it was in service, it would pay taxes on it if it remained in place even if unused. Just my guess.

On Mar 31, 2021, at 15:22, Cohen Bob via groups.io <orl96782@...> wrote:

Question:

When a section of railroad is either unused or out of service (i.e. - Railbanked), are the taxes on the property of the railroad the same as when it is in service and deriving income and specifically taxes for services rendered along its road and if so at what rate/percentage difference?

Thank you.

Bob Cohen


A&Y Dave in MD
 

I would suspect there might be different taxes, including property tax, corporate income tax, local taxes, etc. I would bet differences depend upon whether there were laws, charters, or agreements forgiving taxes to entice construction in that area, how deductions can be worked, what era you are talking about, etc., etc., etc.  Aren’t the variables and complexity why there are scores of financial lawyers on the payroll? If it were easy to figure, they wouldn’t have jobs. Good question but hard to answer.

Dave Bott


On Mar 31, 2021, at 3:22 PM, Cohen Bob via groups.io <orl96782@...> wrote:


Question:

When a section of railroad is either unused or out of service (i.e. - Railbanked), are the taxes on the property of the railroad the same as when it is in service and deriving income and specifically taxes for services rendered along its road and if so at what rate/percentage difference?

Thank you.

Bob Cohen


bjarne@juno.com
 

The answer depends on the state's valuation rules. Real estate is typically assessed and taxed pursuant to state law -- so you need to look at the laws, and the lawsuits over those laws, in the particular state that you are interested in. Many railroads had departments devoted to managing their tax obligations across the states that they served.