Union Pacific Railroad Company v. Department of Revenue of the State of Oregon and the State of Oregon

Appellant Union Pacific Railroad Company, et al. (“Union Pacific”), originally joined by Burlington Northern Railroad Company, brought separate actions in federal court alleging discriminatory taxation by the state of Oregon during the 1985 and 1986 tax years in violation of the Railroad Revitalization and Regulatory Reform Act, 49 U.S.C. § 11503 (“the Act”). Union Pacific’s complaint pertaining to the 1985 tax year is appeal No. 86-4212 and its challenge to the 1986 tax determinations is appeal No. 87-3554. In deference to this Court’s ruling in Atchison, Topeka & Santa Fe Ry. Co. v. Bd. of Equalization, 795 F.2d 1442 (9th Cir.1986) (“Atchison”), vacated, 828 F.2d 9 (9th Cir.1987), the district court abstained from exercising subject matter jurisdiction over Union Pacific’s claims. In light of recent changes in governing case law, Union Pacific now urges us to overturn the district court’s abstention orders. We agree with that request and now reverse and remand for further proceedings.

BACKGROUND

This action arose from the Oregon Department of Revenue’s (“DOR”) valuation of Union Pacific’s transportation property for the purpose of assessing ad valorem taxes involving the…