Taxation and State Taxation -- 2018



BNSF Ry. Co. v. California State Board of Equalization   (N.D. Cal.)

Opposing $45 fee on rail shipments of hazardous materials

The NAM submitted a declaration supporting BNSF and Union Pacific Railroads in their suit against California following the imposition of a $45 per car fee for transportation of hazardous materials. The new law, which only applies to rail shipments, requires railroads to collect the fee from their customers and turn it over to the state with the proceeds of the fee to be used for hazmat training and equipment. This matter is important because imposing a new fee will increase costs to rail customers and unlawfully interfere with interstate commerce. The declaration described the disadvantages to shippers, customers and railroads from the new charge and explained how the charge runs contrary to the long-standing benefits of federal preemption of transportation-related state statutes that help manufacturers by keeping transportation costs affordable and competitive. The U.S. Court of Appeals for the Ninth Circuit affirmed the lower court’s decision, which granted a preliminary injunction against the fee and issued a stay of the case.


Related Documents:
Declaration of Robyn Boerstling (NAM)  (August 1, 2016)
Motion for preliminary injunction  (August 1, 2016)
Complaint  (July 29, 2016)