29 states, the District of Columbia, Texas Counties, and the Confederated Tribes of the Umatilla Indian Reservation require tax filings and collect tax on privately owned or leased rail cars.
Alabama, District of Columbia, Florida, Georgia, Michigan, Mississippi, South Carolina, and Utah. Most of the states have a Taxpayer Access Point (TAP) system. Most states also allow companies to register their accounts and make payments online.
Private rail car taxes are personal property taxes based on the value of the fleet as of a lien date. Each state has its own methodology and formula for calculating private rail car taxes. Many states use mileage information to apportion value. Changes in operations, logistical routes, or fleet size can cause taxes to fluctuate from year to year.
Please see the attached printout for tax payment due dates. Download Here
A company is responsible for reporting private rail cars if you are the car owner or if your company is the responsible party for filing the private rail car taxes under your lease agreement.
Any mileage run in North America is acceptable to include in the system mileage total. It is important to include all mileage run by your rail cars to help minimize your tax liability.
Annual mileage reports are distributed by the railroads to companies in February for tax purposes. Make sure that your contact information is current so that you will be included in the distribution. A.A.R. mileage information can also be purchased from Rail Inc.