State v. Louisville & Nashville Railroad

ALMON, Justice.

This appeal presents the question of whether Alabama’s gross receipts tax upon a railroad’s earnings from “intrastate business” applies to receipts generated by the L & N Railroad’s movement of goods between two points in Alabama. The Court of Civil Appeals held these receipts are taxable under the statute. We reverse.

The railroad gross receipts tax statute presently provides:

In addition to all other taxes imposed by this title, there is hereby levied a license or privilege tax upon each person engaged in the business of operating a railroad in the state of Alabama for the…