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Just out of curiosity, I just put in a request for tickets from Syr to Atl and I did not see any taxes on the cost of the tickets. It seems that I pay a tax on everything else I purchase. What's the deal here? Is it built in?
On another thread there is a lot of discussion regarding UP and freight priority over passenger trains. Who really owns the tracks? If UP owns the tracks do they pay property tax on all of the rights of way?
I pay a registration fee on my cars and truck. Do railroads pay a registration fee for engines and rail cars?
Hope that all of you regulars don't thnk that these are stupid questions, but these questions have come up in conversations at coffee.
Joe
Posts: 85 | From: Finger Lakes Region of NY | Registered: Jun 2008
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Mr. Urda, there is no excise tax on interstate Amtrak tickets, however, some states impose a Sales Tax on intRAstate transportation.
Missouri is one coming to mind, however it appears that Amtrak simply "builds it in" to the ticket price.
To determine both the base price and the tax, take the desired total price and divide such by 1+the tax rate. This now gives the base price which should be less than your established total price. To determine the actual tax, take base price just determined multiplied by the tax rate. To check, add the base price and the sales tax; the result should "hit" within a penny of your desired total price. Round ("fudge") the fraction of a cent if necessary.
"Did it all the time" when I was in practice.
Posts: 9975 | From: Clarendon Hills, IL USA (BNSF Chicago Sub MP 18.71) | Registered: Apr 2002
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quote:Originally posted by Joe Urda: On another thread there is a lot of discussion regarding UP and freight priority over passenger trains. Who really owns the tracks? If UP owns the tracks do they pay property tax on all of the rights of way?
Property tax: Yes. It is also a huge issue. Every county, city, township, school district, and any other form of government that has the right to collect property taxes happily sends a bill to any and all railroad lines that run in any part of their territory. For some rural counties, the railroad property tax is a sizable part of the county income.
That is the reason that railorads try to absolutely minimize fixed facilities. It has also been a big negative on electrification of the private lines. It is no accident that almost all the electrification in this country is on government owned tracks.
Posts: 2808 | From: Olive Branch MS | Registered: Nov 2002
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quote:Originally posted by George Harris: It is no accident that almost all the electrification in this country is on government owned tracks.
Mr.Harris, I am at a loss to think of where there is any of privately owned electrified ROW's beyond a "captive" coal hauling road in Northeast Arizona, where the fuel for generation of power is simply COMTL, or "company material", and the plant at which generated is simply a "company facility".
Posts: 9975 | From: Clarendon Hills, IL USA (BNSF Chicago Sub MP 18.71) | Registered: Apr 2002
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quote:Originally posted by George Harris: It is no accident that almost all the electrification in this country is on government owned tracks.
Mr.Harris, I am at a loss to think of where there is any of privately owned electrified ROW's beyond a "captive" coal hauling road in Northeast Arizona, where the fuel for generation of power is simply COMTL, or "company material", and the plant at which generated is simply a "company facility".
There is also a similar line in East Texas. I don't recall how long, but not near as long as teh Arizona one. Maybe 25 miles? It crosses over either I-20 or I-30, I don't remember which, since I have driven both roads several times.
As you say, since Penn Central de-electrified and Milwaukee dropped their wires, so far as I know, all electric lines are government owned passenger haulers.
Posts: 2808 | From: Olive Branch MS | Registered: Nov 2002
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I should also point out that some states do things a bit different than others. Wisconsin, for example, places an "ad valorem" tax on the railroads, where the property of the railroad was valued as a whole statewide, instead of valued in each municipality. Other members of the forum here can go into more detail. The point remains, though, that for railroads this is a major tax no matter what State of the Union one is in.
You are also correct in that for most of the nation, the rails are private property, and Amtrak's use of those rails represents a "taking" from the private stockholder owned railroads.
-------------------- "Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts. Broad, wholesome, charitable views of men and things cannot be acquired by vegetating in one corner of the Earth all one's life." Posts: 506 | From: Wisconsin | Registered: Mar 2002
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quote:Originally posted by CG96: You are also correct in that for most of the nation, the rails are private property, and Amtrak's use of those rails represents a "taking" from the private stockholder owned railroads.
I'm not sure if the legal question has ever been settled definitively as to whether public access to private property, as opposed to public acquisition and ownership, constitutes a "taking." After all, the private owner still enjoys profitable use of and title to said property.
There are quite a few examples of governments requiring public access to private commercial property as a condition of doing business and to mitigate the negative impacts that business activities have on the public. For example, in California, coastal hotel developments often must provide public beach access. Similarly, it seems quite fair to allow public passenger access to railroad tracks in exchange for the exclusive right to haul freight in a given market.
However, assuming you are correct, Amtrak's payments for use of private rail lines complies with the "just compensation" requirement in the 5th amendment to the U.S. Constitution.
Posts: 2649 | From: California's Monterey Peninsula | Registered: Dec 2000
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