[Congressional Record Volume 161, Number 143 (Thursday, October 1, 2015)]
[Senate]
[Pages S7103-S7104]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORNYN:
  S. 2117. A bill to prevent certain discriminatory taxation of natural 
gas pipeline property; to the Committee on Finance.
  Mr. CORNYN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2117

       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.

[[Page S7104]]

       (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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