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Last Updated: 12/21/2016

Railroad Purchases

Railroad businesses involved in interstate or intrastate commerce can buy certain “rolling-stock” items exempt from sales or use tax.

Nontaxable purchases

The following railroad purchases are nontaxable (the rolling-stock exemption applies to them).

  • rolling stocks (railcars and engine compartments that travel on a track)
  • accessories or equipment attached to rolling stocks
  • diesel fuel
  • oil and lubricants
  • repair and replacement parts for rolling stocks

To claim this exemption, give your vendor a completed Form ST3, Certificate of Exemption. Specify the rolling-stock exemption.

Taxable purchases

The following railroad purchases are taxable (the rolling-stock exemption does not apply to them).

  • equipment and accessories not attached to rolling stocks
  • materials used to build the track
  • tools
  • trucks and hand carts used to repair the track

< Motor Carrier Direct Pay (MCDP) Authorization

Ship and Vessel Purchases >

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