Private Railroad Car Tax Rate & Roll

Private Railroad Car Tax

What is the Private Railroad Car tax?

• The Private Railroad Car tax is an in-lieu property tax on railroad cars owned by non-railroad companies and operated upon California railroads. Railroad company owned cars are included in the unitary value of railroads adopted by the Board each May.
• The tax paid is based on values established by the Board and the number of days the cars were physically in the state.
• The Private Railroad Car tax rate is applied to the assessed value of the cars to calculate the tax.

Who pays the tax?

• Private Railroad Car owners pay the tax.

How is the tax paid and used?

• Private Railroad Car tax is a state tax.
• The tax is administered and collected by the BOE. The tax revenue goes to the state's General Fund.

Private Railroad Car Tax Rate

How is the Private Railroad Car tax rate calculated?

• In accordance with Revenue and Taxation Code section 11403, the Private Railroad Car tax rate is the previous year's average rate of taxation throughout the state.

When is the tax rate set and how long is it effective?

• The BOE is required to levy the tax on private railroad cars on or before October 1 each year (section 11401). The Board is informed of the rate in July, the same month the Board adopts the Private Railroad Car Tax Roll. BOE staff sends assessees the Levy of Tax along with the Notice of Assessment.
• The rate is effective for the fiscal year.

Where can I find the current Private Railroad Car tax rate?

• The current tax rate, along with the past four years, can be found in the Recommendation for Assessment of Private Railroad Cars located on the Board's webpage at http://www.boe.ca.gov/proptaxes/prcpcont.htm.

Private Railroad Car Tax Roll

How is the Private Railroad Car Tax Roll calculated?

• In accordance with Revenue and Taxation Code section 11292, the BOE calculates the full value of the cars based on the owner's acquisition cost, less depreciation. The depreciation is computed based on car type groups on a straight-line basis using the depreciable life schedule provided in the statute with a maximum of 80% allowed depreciation.
• The full value of the cars are then allocated to California based on their physical presence (car days) in the state during the prior year.
• The private railroad cars are then assessed at a percentage of full value to comply with the requirements of the Railroad Revitalization and Regulatory Reform Act (4-R Act). The Board sets this rate at the May meeting.
• The Private Railroad Car tax rate is applied to the assessed value to calculate the estimated amount of tax.

Where can I find the current Private Railroad Car Tax Roll values?

• The current Private Railroad Car Tax Roll values, along with the past four years, can be found in the Recommendation for Assessment of Private Railroad Cars located on the Board's webpage at http://www.boe.ca.gov/proptaxes/prcpcont.htm.