I received the following e-mail about federal passenger rail funding. I think the most important part from Columbus’ perspective is the $345 Million per year available for “Amtrak to finance facilities and infrastructure improvements” if the state can come up with 20% matching funds. I also like the attempt to leverage private investment from the freight railroads. Hat tip to Noozer, who posted this story on Columbus Underground yesterday.
Dear Supporters and Members,
House Resolution H.R. 6003, the Passenger Rail Investment and Improvement Act of 2008, was unveiled May 8 by members of the House Transportation & Infrastructure Committee, with a press conference demonstrating bipartisan support of Amtrak intercity passenger rail service.
The $14 billion, five-year reauthorization includes about $1.34 billion per year for Amtrak’s capital needs, along with $606 million per year for operations. Amtrak’s fiscal year 2008 capital budget was $565 million.
The resolution also includes several provisions for advancing high speed rail development (or what some observers categorized as “higher speed” incremental rail approaches). Two such provisions include: the soliciting of proposals by the U.S. Department of Transportation to significantly upgrade and overhaul Amtrak’s existing Northeast Corridor (NEC); and proposals for two-hour express service between New York and Washington through less-dramatic improvements to existing NEC infrastructure, such as catenary, signaling, and/or additional high speed turnouts.
In addition, about $345 million per year would be provided to states and/or Amtrak to finance facilities and infrastructure improvements, as well as passenger equipment, for projects improving speeds to 110 mph. States would have to provide at least 20% of a project’s cost.
The bill also would establish a pilot program permitting freight railroads to partner with potential new passenger rail providers, and provide more than $400 million per year in matching funds that states could apply for to advance passenger rail improvements.
Notably absent is any mention of penalizing freight railroads for Amtrak’s on-time performance problems. U.S. Sen. Frank R. Lautenberg, D-N.J., recently said the cost borne by Amtrak for such problems was as high as $111.4 million, citing a study conducted by USDOT’s inspector general per Lautenberg’s request. The senator last October sponsored a bill empowering the Surface Transportation Board to investigate Amtrak delays and fine freight railroads held responsible.
A link to more information and video on the House Subcommittee hearing can be found here:
http://transportation.house.gov/hearings/hearingDetail.aspx?NewsID=599
Please Take Action!
Contact your Representative immediately and urge them to support H.R. 6003
to invest in passenger rail.
Explain to your Representative that the resolution contains language to support states looking into passenger rail development. (This funding can be used to implement Ohio Hub start-up service)Contact information for Members of Congress can be found here:
http://www.allaboardohio.org/cms/index.php/content/action/Thank you,
Andrew Bremer
Executive Director
What is FIRPTA? This is an act of the Internal Revenue Code, Section 1445, called the “Foreign Investment Real Property Tax Act”. This Act applies to real estate transfers for property located in the U.S. and Virgin Islands, where the Transferor/Seller is considered by the Internal Revenue Code as a foreign person, and the sales price is greater than $300,000.00. If these facts apply, then generally speaking, the Transferee is required to withhold 10% of the amount realized by the Transferor, and then use IRS Form 8288 to report and pay to the IRS any tax withheld. There are rules for modifying this, but as a general matter, this is the obligation of the Transferee. Both the Seller and Buyer have tax return responsibilities in these situations, so I recommend consulting your tax advisor about your obligations.