Supreme Court of the United States
Csx Transportation, Inc. v. Alabama Department of Revenue
February 22, 2011179 L. Ed. 2d 37
Summary
The Court held that railroads may challenge state sales and use taxes under § 11501(b)(4) of the 4-R Act when those taxes apply to railroads but exempt their competitors. The majority interpreted 'another tax' to cover non-property taxes and 'discriminates' to include tax exemptions, distinguishing prior precedent applicable only to property taxes. Justice Thomas dissented, agreeing that 'another tax' includes sales and use taxes but arguing that the statute only prohibits tax schemes that target or single out railroads compared to general commercial and industrial taxpayers.