[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1201 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1201

  To prevent certain discriminatory taxation of natural gas pipeline 
                               property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 8, 2005

  Mr. Cornyn introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To prevent certain discriminatory taxation of natural gas pipeline 
                               property.

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

SECTION 1. LIMITATION ON DISCRIMINATORY TAXATION OF NATURAL GAS 
              PIPELINE PROPERTY.

    (a) Definitions.--As used in this Act, the following definitions 
apply:
            (1) Assessment.--The term ``assessment'' means valuation 
        for a property tax levied by a taxing authority.
            (2) Assessment jurisdiction.--The term ``assessment 
        jurisdiction'' means a geographical area used in determining 
        the assessed value of property for ad valorem taxation.
            (3) Commercial and industrial property.--The term 
        ``commercial and industrial property'' means property 
        (excluding natural gas pipeline property, public utility 
        property, and land used primarily for agricultural purposes or 
        timber growth) devoted to commercial or industrial use and 
        subject to a property tax levy.
            (4) Natural gas pipeline property.--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 of natural gas subject to the 
        jurisdiction of the Federal Energy Regulatory Commission.
            (5) Public utility property.--The term ``public utility 
        property'' means property (excluding natural gas pipeline 
        property) that is devoted to public service and is owned or 
        used by any entity that performs a public service and is 
        regulated by any governmental agency.

SEC. 2. DISCRIMINATORY ACTS.

    (a) In General.--The acts specified in subsection (b) unreasonably 
burden and discriminate against interstate commerce.
    (b) Discriminatory Acts.--A State, subdivision of a State, 
authority acting for a State or subdivision of a State, or any other 
taxing authority (including a taxing jurisdiction and a taxing 
district) may not do any of the following:
            (1) Assessments.--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 commercial and industrial property in the same 
        assessment jurisdiction has to the true market value of such 
        commercial and industrial property.
            (2) Assessment taxes.--Levy or collect a tax on an 
        assessment that may not be made under paragraph (1).
            (3) Ad valorem taxes.--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) Other taxes.--Impose any other tax that discriminates 
        against a natural gas pipeline providing transportation or 
        storage of natural gas subject to the jurisdiction of the 
        Federal Energy Regulatory Commission.

SEC. 3. JURISDICTION OF COURTS; RELIEF.

    (a) Grant of Jurisdiction.--Notwithstanding section 1341 of title 
28, United States Code, and 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 the courts of the United States, of States, and 
of all other taxing authorities and taxing jurisdictions, to prevent a 
violation of this Act.
    (b) Relief in General.--Except as provided in subsection (c), 
relief may be granted under this Act 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.
    (c) Other Relief.--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 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), 
each of the following shall be a violation of this Act for which relief 
under this Act may be granted:
            (1) Assessments.--An assessment of the natural gas pipeline 
        property at a value that has a higher ratio of assessed value 
        to the true market value of the natural gas pipeline property 
        than the ratio of the assessed value of all other property 
        (excluding public utility property) subject to a property tax 
        levy in the assessment jurisdiction has to the true market 
        value of all other property (excluding public utility 
        property).
            (2) Ad valorem taxes.--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 all other taxable 
        property (excluding public utility property) in the taxing 
        jurisdiction.
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