Surface Board Updates Railroad Taxes for Fair Shipping Rates
Published Date: 6/9/2025
Notice
Summary
The Surface Transportation Board shared the 2024 state tax rates for big railroads to help figure out fair shipping prices. These updated tax numbers affect how the Board checks if railroad rates are reasonable, especially for customers who don’t have many shipping options. Railroads and shippers should watch for comments and rate reviews happening soon, as these tax changes could impact costs and decisions in 2025.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
2024 Class I Railroad Tax Rates
If you are a Class I railroad or a shipper that moves goods by rail, the Surface Transportation Board published the 2024 weighted average state tax rates that will be used in its Revenue Shortfall Allocation Method (RSAM). The published 2024 rates are: BNSF 4.739%, CSX 5.118%, Grand Trunk 7.575%, Canadian Pacific Kansas City 6.178%, Norfolk Southern 5.265%, and Union Pacific 5.035% (with year-over-year changes listed in the notice). These rates are a benchmark the Board uses when deciding whether a challenged rail rate is reasonable under its Simplified Standards for Rail Rate Cases.
Comment Deadline and Adoption Timeline
If you want to comment on AAR's 2024 tax-rate calculations, you must file a comment by July 8, 2025. If no comments are filed, the Board will automatically adopt the rates effective July 9, 2025; if comments are filed, AAR may reply within 20 days of the comments and the Board will issue a decision within 60 days of the close of the record.
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