You asked whether a town can tax property owned by Amtrak that it subsequently leases to a third party for transportation purposes. The Office of Legislative Research is not authorized to issue legal opinions, and this memo should not be considered one.

Federal law (49 U. S. C. § 24301) generally exempts Amtrak from property taxes. It exempts Amtrak, its lessees, lessors, and subsidiaries from “additional taxes” on their expenditures to acquire or improve real property, equipment, right-of-way material or structures used to provide rail passenger transportation, even if the use is indirect. Additional taxes are: (1) taxes on the ownership, acquisition, or improvement of personal property by Amtrak, its lessees, lessors, and their respective rail carrier subsidiaries; and (2) taxes on real property, unless the property is not operated by Amtrak, a lessee, lessor, or subsidiary. Thus a town could only tax the property if it did not benefit rail passenger transportation, even indirectly.

The same section also exempts Amtrak and its rail carrier subsidiaries (but not lessees or lessors) from all state and local taxes and fees imposed on them starting September 30, 1981 unless Amtrak was required to pay the tax or fee as of the effective date of this provision (September 10, 1982). Thus, a town could not tax property owned by Amtrak, even if was leased to a third party, unless it had subjected Amtrak to the property tax before September 10, 1982.

On the other hand, it does not appear that state law provides an independent property tax exemption for Amtrak or its lessees. While CGS § 12-81 exempts property owned by the federal government from the property tax, 49 U. S. C. § 24301(a) specifies that Amtrak is not a federal department, agency, or instrumentality. So, if Amtrak property is not subject to the federal exemption, it would be taxable. In contrast, CGS § 12-81 does exempt property belonging to the Metropolitan Transportation Authority or its subsidiaries, so long as it is used for the operation, maintenance, repair, or improvement of the New Haven commuter railroad.

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