[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5558 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5558

     To limit the discriminatory taxation of oil pipeline property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 6, 2008

Mr. Price of Georgia introduced the following bill; which was referred 
                   to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
     To limit the discriminatory taxation of oil pipeline property.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Infrastructure Tax Fairness 
Act''.

SEC. 2. LIMITATION ON DISCRIMINATORY TAXATION OF OIL PIPELINE PROPERTY.

    (a) Definitions.--For purposes of this Act:
            (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 oil 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) Oil pipeline property.--The term ``oil pipeline 
        property'' means all property, real personal and intangible:
                    (A) owned or used by an oil pipeline providing 
                interstate transportation of oil, refined petroleum 
                products or other hazardous liquids;
                    (B) owned or used by an oil pipeline for storage of 
                oil, refined petroleum products or other hazardous 
                liquids, which is connected to any property described 
                in subparagraph (B); or
                    (C) subject to the jurisdiction of the Federal 
                Energy Regulatory Commission.
            (5) Public utility property.--The term ``public utility 
        property'' means property (excluding oil 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.
    (b) Discriminatory Acts.--The acts specified in this subsection 
unreasonably burden and discriminate against interstate commerce. 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 such acts:
            (1) Assess oil pipeline property at a value that has a 
        higher ratio to the true market value of the oil 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, or levy or collect a tax on 
        such an assessment.
            (2) Levy or collect an ad valorem property tax on oil 
        pipeline property at a tax rate that exceeds the tax rate 
        applicable to commercial and industrial property in the same 
        assessment jurisdiction.
            (3) Impose any other tax that discriminates against oil 
        pipeline property described in subsection (a)(4) of this 
        section.

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, the district 
courts 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 section 1.
    (b) Relief.--Except as otherwise provided in this subsection, 
relief may be granted under this Act only if the ratio of assessed 
value to true market value of oil 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 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 section 1 for which relief under this Act may be 
granted:
            (1) An assessment of the oil pipeline property at a value 
        that has a higher ratio of assessed value to the true market 
        value of the oil 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) The collection of an ad valorem property tax on the oil 
        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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