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Monday December 10, 2007
A Verdict on the Undercard
The U.S. Supreme Court last week ruled unanimously that railroads have the right to challenge the way states calculate their property taxes, in a challenge to Georgia's valuation of the CSX Railway's lines in the state. The dollars at stake are not tiny, but they won't make or break any Georgia government's finances, either. Rather, the case is remarkable to the muni market mainly because it was the first case heard on Nov. 5th, when the justices also heard arguments in Kentucky v. Davis, which challenges the near-universal practice of states exempting interest on bonds from issuers within their borders from their own state income taxes.
The Davis ruling is still expected early next year. The justices seemed sympathetic to the status quo during the oral arguments last month, but it ain't over until the ink is dry...
Posted by bondbuyer [Tax Status and Policy] ( December 10, 2007 08:56 PM ) Permalink | Comments[0]