[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2117 Introduced in Senate (IS)]

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114th CONGRESS
  1st Session
                                S. 2117

  To prevent certain discriminatory taxation of natural gas pipeline 
                               property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 1, 2015

  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.--In this Act:
            (1) Assessment.--The term ``assessment'' means valuation 
        for a property tax that is 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 (whether real, personal, 
        and intangible) used by a natural gas pipeline providing 
        transportation or storage of natural gas subject to the 
        jurisdiction of the Federal 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.
    (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 
        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. 2. JURISDICTION OF COURTS; RELIEF.

    (a) Grant of Jurisdiction.--Notwithstanding section 1341 of title 
28, United States Code, 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 in General.--Except as provided in this subsection, 
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 
commercial and industrial property in the same assessment jurisdiction. 
If the ratio of the assessed value of commercial and industrial 
property in the assessment jurisdiction to the true market value of 
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 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) 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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