§3218-A.__Refunds of tax for fuel used by railroads

Beginning July 1, 2004, the assessor shall monitor the amount of refunds paid under section 3218 for fuel consumed by vehicles operating on rails and monitor the amount of use tax paid on fuel consumed by vehicles operating on rails under chapter 215.

Sec. 12. Review of taxes imposed on railroads; legislation. The chairs of the Joint Standing Committee on Taxation shall appoint a subcommittee to review statutory provisions for taxes that apply to companies operating railroads in the State and consider the impact of these provisions. The subcommittee shall recommend statutory revisions to Maine tax laws to improve the viability of railroads operating in the State. The Joint Standing Committee on Taxation may report out legislation to the Second Regular Session of the 121st Legislature pertaining to taxation of companies operating railroads in Maine.

SUMMARY

This bill does the following:

1. Directs the Commissioner of Economic and Community Development to ensure that transportation needs and the potential use of rail are considered when economic development projects are planned;

2. Establishes a freight transportation advisory council in statute;

3. Requires the Commissioner of Transportation to seek the review and approval of the joint standing committee of the Legislature having jurisdiction over transportation matters prior to the dismantling of state-owned railroad tracks;

4. Increases the maximum reimbursement to railroad companies for maintaining a railroad crossing from $1,500 to $2,500 per crossing;

5. Provides for fines imposed for 6-axle truck weight violations to be deposited into the Railroad Preservation and Assistance Fund when the weight exceeds 100,000 pounds;

6. Repeals the tax credit cap on the railroad excise tax;