23VAC10-210-381 — Railway common carrier activities

# A.

The activities of a railway as defined in the Uniform System of Accounts for Railroad Companies prescribed by the Interstate Commerce Commission are (i) way and structures, (ii) equipment, (iii) transportation, and (iv) general and administrative. The following is a description of each activity:

1. Way and structures. This activity entails the repair, maintenance, and acquisition of right-of-way and track, structures, buildings, and facilities, including TOFC terminals, signals and interlockers, highway grade crossings, running tracks, passing tracks, crossovers, and switching tracks. Functions attributable to accounts 1-43 and 45 of the Uniform System of Accounts as of October 1, 1983, are included in this activity.

2. Equipment. This activity entails the repair, maintenance, and acquisition of transportation and other operating equipment, including locomotives, freight train cars, passenger train cars, highway revenue equipment, floating equipment, and work equipment. Functions attributable to accounts 44 and 52-58 of the Uniform System of Accounts as of October 1, 1983, are included in this activity.

3. Transportation. This activity entails the operation, servicing, inspecting, weighing, assembling, and switching of trains; operation of highway revenue services; operation of facilities in connection with transportation operations (coal and ore terminals, intermodal terminals, and terminal grain elevators for example); operation of floating equipment and related facilities; and the operation of communications systems which primarily support train operations.

4. General and administrative. This activity entails the provision of overall administrative and other general support for carrier operations. For the purposes of 23VAC10-210-380 through 23VAC10-210-387, this activity includes general and administrative functions relating to operating and nonoperating activities, including executive, legal, financial, treasury, accounting, budgeting, taxation, corporate planning, costing, marketing, advertising, traffic, corporate secretary, public relations, real estate, insurance administration, personnel administration, pension plan administration, general purchasing, labor relations, internal auditing, industrial engineering, and regulatory reporting.

# B.

As noted in the Uniform System of Accounts, certain general and administrative functions may be included within the way and structures, equipment, and transportation activities. Such functions include the payment of salaries and wages, fringe benefits, and other directly supportive administrative functions. Tangible personal property used in such functions is taxable.