
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, June 10, 1990                   TAG: 9006100142
SECTION: VIRGINIA                    PAGE: C-3   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Short

RAIL YARD TAX ASSESSMENT RULED UNLAWFUL

State officials broke the law six years ago when they slashed property taxes for a huge railroad yard straddling the Arlington-Alexandria border, the Virginia Supreme Court has ruled.

The unanimous decision Friday could mean a multimillion-dollar tax windfall for the two localities.

The seven justices said the State Department of Taxation, which determines the value of railroad land for tax purposes, had assessed the Potomac Yard at less than its "fair market value," resulting in local property tax bills that are artificially low.

The yard, owned by the Richmond Fredericksburg & Potomac Railroad, is the site of a massive development proposal that calls for phasing out most rail operations and replacing them with high-rise office and residential buildings. The project is one of the largest under consideration in the Washington area.

by CNB