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[quote user="schlimm"] If the post concerning property taxes for NS is to be believed, they have millions in deferred property taxes, meaning they aren't paying them, for whatever legal reason. [/quote] The deferred property taxes figures is located on Page K49 of NSC's 2011 10K.  Deferred taxes does not meant that they won't be paid; they are deferred for a variety of reasons.  Ultimately, some of the taxes will be paid.  What is not certain is the amount. Appraisal districts assess property values, i.e. real property, inventories, etc., and the taxing authorities set a rate for ad valorem taxes. In the case of a large organization, with multiple property appraisal and taxing districts, the outcomes can be very complex. In many instances, as was the case with the large corporation that I worked for, corporate management and the taxing authorities disagree on the appraisal values. This can result in lengthy litigation to determine the true value of the property and, therefore, the tax liabilities. Meanwhile, the corporation will accrue the taxes, i.e. charge them to taxes, which impacts net income, but it does not pay them until the litigation has been resolved. Instead, it places the potential payments in a deferred tax account.
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