Union Pacific Railroad Company is fighting the state of Utah over hundreds of millions of dollars in taxes — and it could have a big impact on local governments in areas where the company’s rail, equipment, buildings and land accounts for a significant share of taxable property.
The Utah Tax Commission has assessed Union Pacific $1.5 billion in property taxes for 2018, but the railroad says it only owes $885 million.
A federal judge has ordered that counties may receive the undisputed amount — $885 million — while the dispute plays out in court. The contested $615 million will be placed in an escrow account until the case is resolved.