End Discriminatory State Taxes for Automobile Renters Act of 2009 - Prohibits states or local governments from levying or collecting a discriminatory tax (generally, a tax or tax assessment that is applicable to the rental of motor vehicles or motor vehicle businesses or property, but not to the majority of other rentals of tangible personal property within a state or locality) on the rental of motor vehicles, motor vehicle rental businesses, or motor vehicle rental property.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4175 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4175
To protect consumers from discriminatory State taxes on motor vehicle
rentals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 2, 2009
Mr. Boucher (for himself, Mr. Akin, Mr. Carnahan, Mr. Graves, Mr.
Boren, Mr. Sullivan, Mr. Israel, Mr. Wilson of South Carolina, and Mr.
Carter) introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To protect consumers from discriminatory State taxes on motor vehicle
rentals.
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 ``End Discriminatory State Taxes for
Automobile Renters Act of 2009''.
SEC. 2. PURPOSE.
The purpose of this Act is to prohibit prospectively, and provide a
remedy for tax discrimination by a State or Locality against the rental
of motor vehicles.
SEC. 3. DEFINITIONS.
(a) Assessment and Assessment Jurisdiction.--The term
``assessment'' means valuation for a property tax levied by a taxing
district. The term ``assessment jurisdiction'' means a geographical
area in a State or Locality used in determining the assessed value of
property for ad valorem taxation.
(b) Commercial and Industrial Property.--The term ``commercial and
industrial property'' means property, other than motor vehicle rental
property and land used primarily for agricultural purposes or timber
growing, devoted to a commercial or industrial use, and subject to a
property tax levy.
(c) Discriminatory Tax.--The term ``discriminatory tax'' includes
the following:
(1) A tax discriminates against the rental of motor
vehicles if a State or Locality imposes the tax on, or with
respect to--
(A) the rental of motor vehicles but not on, or
with respect to, the rental of more than 51 percent of
the rentals of other tangible personal property rented
within the State or Locality, or
(B) the rental of motor vehicles at a tax rate that
exceeds the tax rate generally applicable to at least
51 percent of the rentals of other tangible personal
property within the same State or Locality.
(2) A tax discriminates against the business of renting
motor vehicles if a State or Locality imposes the tax on, or
with respect to--
(A) the business of renting motor vehicles but not
on, or with respect to, the business of more than 51
percent of the other commercial and industrial
taxpayers within the State or Locality, on the same tax
base as the State or Locality employs with respect to
the business of renting motor vehicles, or
(B) the business of renting motor vehicles, at a
tax rate that exceeds the tax rate generally applicable
to the business of more than 51 percent of the other
commercial and industrial taxpayers within the State or
Local jurisdiction.
(3) A tax discriminates against motor vehicle rental
property if a State or Locality--
(A) assesses motor vehicle rental property at a
value that has a higher ratio to the true market value
of the property than the ratio that the assessed value
of other commercial and industrial property of the same
type in the same assessment jurisdiction has to the
true market value of the other commercial and
industrial property,
(B) levies or collects a tax on an assessment that
may not be made under subparagraph (A), or
(C) levies or collects an ad valorem property tax
on motor vehicle rental property at a tax rate that
exceeds the tax rate applicable to commercial and
industrial property in the same assessment
jurisdiction.
(d) Local or Locality.--The terms ``Local'' and ``Locality'' mean a
political subdivision of any State, or any governmental entity or
person acting on behalf of such Locality, and with the authority to
impose, levy or collect taxes.
(e) Motor Vehicle.--The term ``motor vehicle'' has the same meaning
as in section 13102(16) of title 49 of the United States Code.
(f) Other Commercial and Industrial Taxpayers.--The term ``other
commercial and industrial taxpayers'' means persons or entities who are
engaged in trade or business within a State or Locality and who are
subject to some form of taxation by a State or Locality.
(g) Rental of Motor Vehicles.--The term ``rental of motor
vehicles'' means the rental of a motor vehicle that is given by the
owner of the motor vehicle for exclusive use to another for not longer
than 180 days for valuable consideration and only includes the rental
of motor vehicles with a pre-arranged driver or motor vehicles without
a driver, but shall not include taxi cab service as defined by section
13102(20) of title 49 of the United States Code.
(h) State.--The term ``State'' means any of the several States, the
District of Columbia or any territory or possession of the United
States, or any governmental entity or person acting on behalf of such
State, and with the authority to impose, levy or collect taxes.
(i) Tax.--Except as otherwise specifically provided below, the term
``tax'' means any type of charge required by statute, regulation or
agreement to be paid or furnished to a State or Locality, regardless of
whether such charge is denominated as a tax, a fee, or any other type
of exaction. The term ``tax'' does not include any charge imposed by a
State or Locality with respect to a concession agreement at a federally
assisted airport (provided the agreement does not violate the revenue
diversion provisions of section 40116(d) of title 49 of the United
States Code, or the registration, licensing, or inspection of motor
vehicles, if the charge is imposed generally with respect to motor
vehicles, without regard to whether such vehicles are used in the
business of renting motor vehicles within the State or Locality.
(j) Tax Base.--The term ``tax base'' means the receipts, income,
value, weight, or other measure of a tax to which the rate is applied.
The ``tax base'' of a tax imposed on a per unit basis is the unit.
(k) Tax Rate Generally Applicable to Other Commercial and
Industrial Taxpayers.--The term ``tax rate generally applicable to
other commercial and industrial taxpayers'' means the lower of--
(1) the tax rate imposed on the greatest number of other
commercial and industrial taxpayers or their customers, or
(2) the unweighted average rate at which the tax is
imposed.
SEC. 4. PROHIBITED ACTS.
No State or Locality may levy or collect a discriminatory tax on
the rental of motor vehicles, the business of renting motor vehicles,
or motor vehicle rental property.
SEC. 5. REMEDIES.
(a) Jurisdiction.--Notwithstanding any provision of section 1341 of
title 28, United States Code, or the constitution or laws of any State,
the district courts of the United States shall have jurisdiction,
without regard to amount in controversy or citizenship of the parties,
to grant such mandatory or prohibitive injunctive relief, interim
equitable relief, and declaratory judgments as may be necessary to
prevent, restrain or terminate any acts in violation of this Act,
except that such jurisdiction shall not be exclusive of the
jurisdiction which any Federal or State court may have in the absence
of this section.
(b) Burden of Proof.--The burden of proof in any proceeding brought
under this Act shall be upon the party seeking relief and shall be by a
preponderance of the evidence on all issues of fact.
(c) Relief.--In granting relief against a tax which is imposed in
violation of section 4, the court shall strike the tax in its entirety,
unless the court finds the tax--
(1) is the equivalent of a specific tax imposed on at least
51 percent of other commercial and industrial taxpayers, and
(2) is not discriminatory in effect. If such tax is
discriminatory in effect with respect to tax rate or amount
only, the court shall strike only the discriminatory or
excessive portion of the tax as determined by the court.
Notwithstanding subsection (b) of this section, the burden of
proof on the issue of whether a tax is the equivalent of a tax
imposed on other commercial and industrial taxpayers shall be
on the State or Locality that imposes the tax.
(d) Cause of Action.--
(1) An action to enforce the provisions of this Act may be
brought only by a person who--
(A) rents motor vehicles to another person,
(B) is engaged in the business of renting motor
vehicles,
(C) owns motor vehicle rental property, or
(D) rents a motor vehicle from another person.
(2) A person who rents a motor vehicle from another person
and is seeking relief under this Act may only bring a cause of
action against the State or Locality imposing the
discriminatory tax as defined by this Act.
SEC. 6. LIMITATIONS.
This Act shall not be construed to constitute the consent of
Congress to State or Local taxation that would be prohibited in the
absence of this Act.
SEC. 7. EFFECTIVE DATE.
(a) Effective Date.--The provisions of this Act shall become
effective on December 2, 2009.
(b) Exclusion.--Discriminatory taxes as defined by this Act are not
prohibited under this Act if--
(1) State or Local legislative authorization for a
discriminatory tax that is in effect as of December 2, 2009,
does not lapse, the tax rate does not increase and the tax base
for such tax does not change; or
(2) a State enacts legislation by December 2, 2009;
(A) that specifically authorizes a Locality to
impose a discriminatory tax;
(B) the Locality imposes the authorized tax within
five years from the date the State enacted the
authorization for the Local tax; and
(C) the tax rate imposed by the Locality is not
increased and the tax base for such tax does not
change.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E2867)
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Commercial and Administrative Law.
Subcommittee Hearings Held.
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