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[quote user="daveklepper"] THE POINT IS THAT THE TRUCK AND BUS COMPANIES USING THE PARALLEL INTERSTATE GET THE SAME POLICE PROTECTION AND THE SAME VALYE FROM THE SCHOOLS BUT DO NOT PAY FOR IT LIKE THE UP DOES.   THAT IS THE POINT. [/quote] As it turns out that the UP does not pay any local taxes, or at least much less than the tax rates and amounts would indicate, because it is able to deduct the depreciation expense associated with its rights-of-way from its federal tax return. According the the UP as per its 2013 10-K, most of its depreciation expense is driven by its investments in the road, i.e. ballast, rail, ties, etc.    Equally important, the UP is able to deduct the rights-of-way property taxes from its federal income tax return.  Highway users cannot deduct the depreciation expense associated with highways for a very good reason. There is none! Depending on its effective tax rate, sometimes known as a tax shield, the UP, as well as the other freight railroads, may be able to recover from 125 to 150 per cent of the property taxes it pays.  Or its customers pay!
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