[Federal Register Volume 74, Number 19 (Friday, January 30, 2009)]
[Notices]
[Page 5727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2056]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Ex Parte No. 646 (Sub-No. 2)]


Simplified Standards for Rail Rate Cases--Taxes in Revenue 
Shortfall Allocation Method

AGENCY: Surface Transportation Board.

ACTION: Notice of decision.

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SUMMARY: By a decision served on January 30, 2009, the Board directed 
the Association of American Railroads (AAR), and permitted other 
parties, to file supplemental evidence so that the Board has a full 
record on which to base its methodology to calculate a railroad-
specific average state tax rate for use in the Revenue Shortfall 
Allocation Method (RSAM).

DATES: AAR is directed to file supplemental evidence by February 19, 
2009. Any interested person may reply by March 11, 2009. AAR's rebuttal 
is due March 25, 2009.

FOR FURTHER INFORMATION CONTACT: Timothy J. Strafford, (202) 245-0356. 
[Assistance for the hearing impaired is available through the Federal 
Information Relay Service (FIRS) at 1-800-877-8339.]

SUPPLEMENTARY INFORMATION: The Board recently found that the failure to 
include state and federal taxes in RSAM calculations was material 
error. The Board concluded that the use of the statutory federal tax 
rate, combined with a railroad-specific weighted average state tax 
rate, best approximated the marginal taxes that the carrier would pay 
on the incremental revenue hypothesized by RSAM.
    The decision served on January 30, 2009, directed AAR to submit the 
evidence and calculations necessary to establish carrier-specific 
average state tax rates for each Class I railroad, including state 
corporate income tax rates and the number of miles operated by each 
carrier in each state it operates in for each of the years 2002-2007, 
by February 19, 2009. Any interested person may reply by March 11, 
2009. AAR's rebuttal is due March 25, 2009. Once there is resolution to 
any disputes over how to calculate the carrier-specific state tax 
rates, the Board will publish the new RSAM figures.
    Additional information is contained in the Board's decision. A copy 
of the Board's decision is available for inspection or copying at the 
Board's Public Docket Room, Room 131, 395 E Street, SW., Washington, DC 
20423-0001, and is posted on the Board's Web site, http://www.stb.dot.gov.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

    Decided: January 23, 2008.

    By the Board, Chairman Nottingham, Vice Chairman Mulvey, and 
Commissioner Buttrey.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. E9-2056 Filed 1-29-09; 8:45 am]
BILLING CODE 4915-01-P