I 

112TH CONGRESS 

2D SESSION H. R. 4847 

To prevent certain discriminatory taxation of natural gas pipeline property. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2012 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. LIMITATION ON DISCRIMINATORY TAXATION 

4 OF NATURAL GAS PIPELINE PROPERTY. 

5 (a) DEFINITIONS.—For purposes of section: 

6 (1) ASSESSMENT.—The term ‘‘assessment’’ 

7 means valuation for a property tax levied by a taxing 

8 authority. 

9 (2) ASSESSMENT JURISDICTION.—The term 

10 ‘‘assessment jurisdiction’’ means a geographical area 

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1 used in determining the assessed value of property 

2 for ad valorem taxation. 

3 (3) COMMERCIAL AND INDUSTRIAL PROP4 ERTY.—The term ‘‘commercial and industrial prop5 erty’’ means property (excluding natural gas pipeline 

6 property, public utility property, and land used pri7 marily for agricultural purposes or timber growth) 

8 devoted to commercial or industrial use and subject 

9 to a property tax levy. 

10 (4) NATURAL GAS PIPELINE PROPERTY.—The 

11 term ‘‘natural gas pipeline property’’ means all 

12 property, real, personal, and intangible, owned or 

13 used by a natural gas pipeline providing transpor14 tation or storage of natural gas, subject to the juris15 diction of the Federal Energy Regulatory Commis16 sion. 

17 (5) PUBLIC UTILITY PROPERTY.—The term 

18 ‘‘public utility property’’ means property (excluding 

19 natural gas pipeline property) that is devoted to 

20 public service and is owned or used by any entity 

21 that performs a public service and is regulated by 

22 any governmental agency. 

23 (b) DISCRIMINATORY ACTS.—The acts specified in 

24 this subsection unreasonably burden and discriminate 

25 against interstate commerce. A State, subdivision of a 

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1 State, authority acting for a State or subdivision of a 

2 State, or any other taxing authority (including a taxing 

3 jurisdiction and a taxing district) may not do any of the 

4 following such acts: 

5 (1) Assess natural gas pipeline property at a 

6 value that has a higher ratio to the true market 

7 value of the natural gas pipeline property than the 

8 ratio that the assessed value of other commercial 

9 and industrial property in the same assessment ju10 risdiction has to the true market value of the other 

11 commercial and industrial property. 

12 (2) Levy or collect a tax on an assessment that 

13 may not be made under paragraph (1). 

14 (3) Levy or collect an ad valorem property tax 

15 on natural gas pipeline property at a tax rate that 

16 exceeds the tax rate applicable to commercial and in17 dustrial property in the same assessment jurisdic18 tion. 

19 (4) Impose any other tax that discriminates 

20 against a natural gas pipeline providing transpor21 tation subject to the jurisdiction of the Federal En22 ergy Regulatory Commission. 

23 SEC. 2. JURISDICTION OF COURTS; RELIEF. 

24 (a) GRANT OF JURISDICTION.—Notwithstanding sec25 tion 1341 of title 28, United States Code, and notions of 

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1 comity, and without regard to the amount in controversy 

2 or citizenship of the parties, the district courts of the 

3 United States shall have jurisdiction, concurrent with 

4 other jurisdiction of the courts of the United States, of 

5 States, and of all other taxing authorities and taxing juris6 dictions, to prevent a violation of section 1. 

7 (b) RELIEF.—Except as otherwise provided in this 

8 subsection, relief may be granted under this Act only if 

9 the ratio of assessed value to true market value of natural 

10 gas pipeline property exceeds by at least 5 percent the 

11 ratio of assessed value to true market value of other com12 mercial and industrial property in the same assessment 

13 jurisdiction. If the ratio of the assessed value of other 

14 commercial and industrial property in the assessment ju15 risdiction to the true market value of all other commercial 

16 and industrial property cannot be determined to the satis17 faction of the court through the random-sampling method 

18 known as a sales assessment ratio study (to be carried 

19 out under statistical principles applicable to such a study), 

20 each of the following shall be a violation of section 1 for 

21 which relief under this Act may be granted: 

22 (1) An assessment of the natural gas pipeline 

23 property at a value that has a higher ratio of as24 sessed value to the true market value of the natural 

25 gas pipeline property than the ratio of the assessed 

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1 value of all other property (excluding public utility 

2 property) subject to a property tax levy in the as3 sessment jurisdiction has to the true market value of 

4 all other property (excluding public utility property). 

5 (2) The collection of an ad valorem property tax 

6 on the natural gas pipeline property at a tax rate 

7 that exceeds the tax rate applicable to all other tax8 able property (excluding public utility property) in 

9 the taxing jurisdiction. 

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