Several local governments fight court ruling on railroad intermodal yards

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Dauphin County, the City of Harrisburg, Swatara Township, Harrisburg School District, and Central Dauphin School District jointly filed an appeal recently with the Dauphin County Court in response to a Commonwealth Court ruling in February that railroad intermodal yards are exempt from the Public Utility Realty Tax (PURTA).

The taxing authorities all are home to Norfolk Southern Railroad infrastructure. The appeal is for the $2.14 million authorities will lose annually as a result of the ruling.

The ruling, Lehigh Valley Rail Management LLC v. County of Northampton Revenue Appeals, prompted the Dauphin County Board of Assessment Appeals to grant an exemption for Norfolk Southern’s intermodal yard in Harrisburg and Swatara Township.

Other counties have granted similar tax exemptions.

“This big tax break for the railroad puts a heavy burden on taxpayers,” Commissioner George P. Hartwick, III, who oversees Dauphin’s Tax Assessment Office, said. “We intend to fight the railroad’s claim to tax exemption under this archaic law, PURTA, that will leave the county and several taxing authorities, especially Harrisburg and Central Dauphin School Districts, with a revenue deficit.”

The railroad requested a tax exemption with the county in 2015 and continued to pay taxes on the intermodal yard through September. Under the ruling, the taxing authorities must refund $6.8 million.