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United States Court of Appeals for the Eighth Circuit
February 16, 2011, Submitted; October 14, 2011, Filed
[*665] WOLLMAN, Circuit Judge.
This action by Midwest Railcar Repair, Inc. (Midwest) against the South Dakota Department of Revenue and Regulation (the Department), seeks a declaration that South Dakota has a taxation scheme that violates a provision of the federal Railroad Revitalization and Regulatory Reform Act (4-R Act), namely, 49 U.S.C. § 11501(b)(4). The complaint alleges in part that "[t]he 4-R Act's bar on discriminatory taxes against rail carriers extends to Midwest Railcar Repair." Following discovery, both Midwest and the Department moved for summary judgment. The district court denied Midwest's motion and granted the Department's, concluding that our cases "do no support [**2] extending the protections of the 4-R Act to Midwest," D. Ct. Order [*666] of June 23, 2010, at 6, a "privately owned compan[y] . . . that service[s] railroad carriers," id., at 4. Midwest appeals.
The history of the 4-R Act has been well summarized by the United States Supreme Court: "[R]ailroads are easy prey for State and local tax assessors in that they are nonvoting, often nonresident, targets for local taxation, who cannot easily remove themselves from the locality." Dep't of Revenue of Or. v. ACF Indus., Inc., 510 U.S. 332, 336, 114 S. Ct. 843, 127 L. Ed. 2d 165 (1994) (internal quotation marks omitted). So ] to remove the "temptation to excessively tax" railroads "to subsidize general welfare spending," W. Air Lines, Inc. v. Bd. of Equalization of S.D., 480 U.S. 123, 131, 107 S. Ct. 1038, 94 L. Ed. 2d 112 (1987), Congress enacted the 4-R Act to restore the financial stability of the nation's railway system, one of the means of achieving that goal being the 4-R Act's prohibition of certain "state and local taxation schemes that discriminate against rail carriers." CSX Transp., Inc. v. Ala. Dep't of Revenue, 131 S. Ct. 1101, 1105, 179 L. Ed. 2d 37 (2011).
A. The Taxation Scheme
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
659 F.3d 664 *; 2011 U.S. App. LEXIS 20812 **
Midwest Railcar Repair, Inc., Appellant, v. South Dakota Department of Revenue and Regulation, Appellee.
Prior History: [**1] Appeal from the United States District Court for the District of South Dakota.
Midwest Railcar Repair, Inc. v. S.D. Dep't of Revenue & Regulation, 2010 U.S. Dist. LEXIS 63651 (D.S.D., June 23, 2010)
railroad, carriers, Railcar, repair, taxes, entities, common carrier, cases, district court, discriminate, discriminatory treatment, personal property, taxation scheme, extending, taxation, transportation, speculation, exempted, tangible, lease
Business & Corporate Compliance, Transportation Law, Rail Transportation, State & Local Regulation, Tax Law, State & Local Taxes, General Overview, Use Taxes, Imposition of Tax, Sales Taxes, Personal Property Taxes, Tangible Personal Property, Limitations on Tax