[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4726 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4726

To prevent discriminatory taxation of natural gas pipeline property by 
                              the States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 2004

  Mr. Carter introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To prevent discriminatory taxation of natural gas pipeline property by 
                              the States.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PREVENTION OF DISCRIMINATORY TAXATION OF NATURAL GAS 
              PIPELINE PROPERTY.

    (a) Definitions.--In this section--
            (1) the term ``assessment'' means valuation for a property 
        tax levied by a taxing district;
            (2) the term ``assessment jurisdiction'' means a 
        geographical area used in determining the assessed value of 
        property for ad valorem taxation;
            (3) the term ``natural gas pipeline property'' means all 
        property, real, personal and intangible, owned or used by a 
        natural gas pipeline providing transportation or storage 
        subject to the jurisdiction of the Federal Energy Regulatory 
        Commission;
            (4) the term ``commercial and industrial property'' means 
        property, other than natural gas pipeline property, public 
        utility property and land used primarily for agricultural 
        purposes or timber growing, devoted to a commercial or 
        industrial use and subject to a property tax levy;
            (5) the term ``public utility property'' means property, 
        other than natural gas pipeline property, devoted to public 
        service and owned or used by any company which performs a 
        public service and which company is regulated by any 
        governmental agency, and
            (6) the term ``State'' as the meaning given such term in 
        section 110(d) of title 4 of the United States Code.
    (b) Prohibited Acts.--The following acts unreasonably burden and 
discriminate against interstate commerce, and a State, subdivision of a 
State, authority acting for a State or for a subdivision of a State, or 
any other taxing authority, taxing jurisdiction, or taxing district 
established under State law may not do any of them:
            (1) Assess natural gas pipeline property at a value that 
        has a higher ratio to the true market value of the natural gas 
        pipeline property than the ratio that the assessed value of 
        other commercial and industrial property in the same assessment 
        jurisdiction has to the true market value of the other 
        commercial and industrial property.
            (2) Levy or collect a tax on an assessment that may not be 
        made under paragraph (1).
            (3) Levy or collect an ad valorem property tax on natural 
        gas pipeline property at a tax rate that exceeds the tax rate 
        applicable to commercial and industrial property in the same 
        assessment jurisdiction.
            (4) Impose any other tax that discriminates against a 
        natural gas pipeline providing transportation subject to the 
        jurisdiction of the Federal Energy Regulatory Commission.
    (c) Jurisdiction of Courts.--Notwithstanding section 1341 of title 
28 of the United States Code, or notions of comity, and without regard 
to the amount in controversy or citizenship of the parties, a district 
court of the United States shall have jurisdiction, concurrent with 
other jurisdiction of courts of the United States, States, and all 
other taxing authorities and taxing jurisdictions to prevent a 
violation of subsection (b). Relief may be granted under this 
subsection only if the ratio of assessed value to true market value of 
natural gas pipeline property exceeds by at least 5 percent the ratio 
of assessed value to true market value of other commercial and 
industrial property in the same assessment jurisdiction. If the ratio 
of the assessed value of other commercial and industrial property in 
the assessment jurisdiction to the true market value of all other 
commercial and industrial property cannot be determined to the 
satisfaction of the district court through the random-sampling method 
known as a sales assessment ratio study (to be carried out under 
statistical principles applicable to such a study), the court shall 
find, as a violation of this section--
            (1) an assessment of the natural gas pipeline property at a 
        value that has a higher ratio to the true market value of the 
        natural gas pipeline property than the assessed value of all 
        other property subject to a property tax levy in the assessment 
        jurisdiction has to the true market value of all other 
        commercial and industrial property; and
            (2) the collection of an ad valorem property tax on the 
        natural gas pipeline property at a tax rate that exceeds the 
        tax rate applicable to taxable property in the taxing district.

SEC. 2. EFFECTIVE DATE; APPLICATION OF ACT.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
shall take effect on the date of the enactment of this Act.
    (b) Application of Act.--The Act shall not apply with respect to 
any taxable year that begins before the date of the enactment of this 
Act.
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