Bulletin Number
VTB 80-7
Tax Type
Local Taxes
Property Tax
Description
Local Taxation of Real and Tangible Personal Property of Railway Companies
Topic
Property Subject to Tax
Date Issued
09-24-1980
DATE: September 24, 1980
SUBJECT: Local Taxation of Real and Tangible Personal Property of Railway Companies
The Federal "Railroad Revitalization and Regulatory Reform Act," also known as the "4R Act" has changed the method of assessment and taxation of railroad property in Virginia. The federal legislation is designed to equalize the property tax burden on railroad companies with the property tax burden on other commercial and industrial companies.
The implementing statute ( 58-514.2:2, effective January 1, 1980) requires railroad property, except land and noncarrier property, to be assessed at the local ratio as determined and published by the Department of Taxation. The tax rate is required to be the local real estate tax rate. Localities will no longer be required to determine alternative tax rates on railroad property.
Any questions concerning this should be addressed to Otho C. W. Fraher, Assistant Director of our Property Tax Division at (804) 257-8020.
Tax Bulletins