Taft is pleased to have served as legal counsel to railroad carrier CSX in an Ohio tax dispute before the Ohio Board of Tax Appeals, resulting in the reversal of a nearly $9 million commercial activity tax assessment.

The Ohio Board of Tax Appeals ruled that the commercial activity tax for CSX must be recalculated, stating the Ohio tax commissioner incorrectly sourced receipts under a statute that applies to motor carriers.

In 2012, an Ohio sourcing law was amended to apply to motor carriers instead of common carriers specially exempted from the law’s method for calculating tax. The Ohio Board of Tax Appeals stated that CSX proved it can source receipts under a different statute that considers where benefits of services are received over the course of 2012 through 2016.

“We believe the board correctly applied Ohio law in concluding that CSX is not a motor carrier and that its receipts should not be sitused for the commercial activity tax as if it were a motor carrier,” stated Taft Partner Jeremy Hayden in a Law360 article (subscription required).

Taft’s team, combining the work of its State and Local Tax Practice and Appellate Litigation Practice, was led by Jeremy Hayden and included Christopher Tassone, Javan Kline, Aaron Herzig, and Alex Wallin.