Housatonic Railroad Company, Inc. v. Commissioner of Revenue Services, 301 Conn. 268

Summary

The Supreme Court of Connecticut held that the federal Railroad Revitalization and Regulatory Reform Act applies to discriminatory petroleum taxes affecting rail carriers. However, the court concluded that the Act authorizes only prospective injunctive or declaratory relief and does not waive sovereign immunity for claims seeking refunds of taxes already paid. The court affirmed dismissal of Housatonic Railroad's refund action against the Commissioner of Revenue Services.

Holdings

1. The 4-R Act's prohibition on another tax that discriminates against a rail carrier encompasses discriminatory petroleum or gross-earnings taxes and is not limited to discriminatory ad valorem property taxes.
2. The 4-R Act does not authorize a rail carrier to obtain a refund of taxes already paid; it authorizes prospective relief, including injunctive or declaratory relief, to prevent violations.
3. A purchaser of petroleum products is not a taxpayer entitled to appeal under § 12-597 merely because the distributor passed the economic cost of the petroleum tax on to the purchaser.
4. An appeal from a commissioner's decision concerning a petroleum-tax refund must proceed under the specific appeal provision, § 12-597, rather than the general appeal provision, § 12-33; therefore, a non-taxpayer cannot use § 12-33 to evade § 12-597's taxpayer requirement.

Questions Presented

1. Whether the federal Railroad Revitalization and Regulatory Reform Act of 1976 permits a rail carrier to obtain a refund of petroleum taxes already paid to the state.
2. Whether a purchaser of petroleum products that bore the economic cost of a petroleum tax, but was not legally liable for or directly paid the tax to the state, is a taxpayer entitled to appeal under General Statutes § 12-597.
3. Whether General Statutes § 12-33 provides an alternative avenue for appealing a commissioner's decision concerning a petroleum-tax refund when § 12-597 limits appeals to taxpayers.

Disposition

affirmed