110 HR 5558 IH: Energy Infrastructure Tax Fairness U.S. House of Representatives 2008-03-06 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 5558 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.

1.

Short title

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

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.

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.