GAO Comments on Department of Transportation Study of Amtrak State and Local Taxation

GAO commented on the Department of Transportation's review of Amtrak. The review concluded that Amtrak should be exempted from State and local personal property, sales and use, income, and gross revenue taxes and construction fees and permits. It did not recommend complete exemption from real property taxes. However, it did recommend freezing assessment levels for real property taxes at those in effect as of April 1976. Permitting real property taxation at those assessment levels is intended to provide State and local governments with some payment for the services they provide Amtrak but prevent the taxation of federally financed improvements. Amtrak would remain subject to all other user fees, licenses, and taxes and would continue to collect retail sales taxes on sales to its customers. Any Amtrak activities not related to railroad passenger transportation would remain fully taxable. The review also recommended that private railroad companies be exempt from taxation on improvements to their property that are financed by Amtrak.