To prevent certain discriminatory taxation of natural gas pipeline property.

This bill describes acts that unreasonably burden and discriminate against interstate commerce with respect to natural gas pipeline property. It prohibits states, political subdivisions, and any other taxing authority from: (1) assessing natural gas pipeline property at a value that has a higher ratio to its true market value than the ratio used to assess other commercial and industrial property in the same assessment jurisdiction, (2) levying or collecting a tax on such an assessment, (3) levying or collecting an ad valorem property tax on natural gas pipeline property at a rate that exceeds the rate applicable to commercial and industrial property in the same assessment jurisdiction, or (4) imposing any other tax that discriminates against a natural gas pipeline providing transportation subject to the jurisdiction of the Federal Energy Regulatory Commission.

The bill grants jurisdiction to U.S. District Courts for claims involving discriminatory taxation of natural gas pipeline property and provides for relief for such claims.

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3663 Introduced in House (IH)]

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114th CONGRESS
  1st Session
                                H. R. 3663

  To prevent certain discriminatory taxation of natural gas pipeline 
                               property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 2015

  Mr. Flores (for himself and Mr. Gene Green of Texas) introduced the 
  following bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 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.--For purposes of section:
            (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 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, real, personal, and 
        intangible, used by a natural gas pipeline providing 
        transportation or storage of natural gas, subject to the 
        jurisdiction of the Federal Energy 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.--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 natural gas pipeline property at a 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 
        other commercial and industrial property in the same assessment 
        jurisdiction has to the true market value of the other 
        commercial and industrial property.
            (2) Levy or collect a tax on an assessment that may not be 
        made under paragraph (1).
            (3) 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) Impose any other tax that discriminates against a 
        natural gas pipeline providing transportation 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.--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 natural gas 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 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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