Atlanta Federal Court Ruling: S.E.D.A. must give back $500K… Colbert Schools, $1Million

by Staff
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Shoals Industrial Development Committee

Shoals Industrial Development Committee

FLORENCE –  The regular Quarterly meeting of the Shoals Industrial Development Committee was churning on as it usually does. The Thursday conclave had budgets read, discussed some of the truly remarkable things that have been done to draw new business to The Shoals.

Toward the end of the meeting, however, the organization’s attorney, Jimmy Hughston had his turn to speak to the committee members. He told the group of elected officials that a judgement had been made by the Federal Court in Atlanta which, if left unchallenged, would force S.I.D.C. and Colbert County Schools, about $1.5 Million in fuel taxes.

These taxes were levied on CSX Norfolk-Southern Railroad in their fuel taxes. The railroad sued in Federal Court, claiming unfair discrimination because river commercial traffic, and commercial trucking were not charged the fuel tax.

norfolk southern

The railroad filed suit after the decision was handed down to get the tax money back which had been paid during the last 3 years.

The plans for defending the suit are still up in the air, mainly because the State of Alabama faces a much larger amount of money to refund. The state is expected to appeal the decision. Hughston told the body that his office is preparing a defense that will be in place for work with Alabama’s lawyers.

If the railroad prevails in the suit, they will also be freed from continuing to pay the tax in the future. This is a potentially huge amount of money. Why Colbert County and not Lauderdale as far as the school funds go? The railroad has a large train yard just east of Muscle Shoals. That is where the trains fuel, and Colbert is the county where the taxed are received.

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2 comments

Bill Clemmons July 26, 2013 - 12:21 pm

Are the acyronyms S.E.D.A. and S.I.D.C. synonyms ?

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Shoalanda July 26, 2013 - 11:18 pm

Two different organizations…

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