ALBANY, N.Y. — The New York state Legislature passed a measure that will reduce property taxes on land owned by railroads, the Albany Business Review reports. The new rail Infrastructure Investment Act will phase in a 45 percent tax cut over seven years.
Gov. George Pataki has been pushing the initiative for two years. He maintained that by reducing taxes on railroads, railroads in turn will be able to spend more money on upgrading existing rail lines and build new ones.
The program will also offer an aid program providing $70 million over 10 years to local governments to offset their revenue loss from the tax cuts. About $4.7 million will be offered starting in 2003-2004.
Railroads like CSX have been vocal in their complaints about the state’s tax burden on railroad property.