I 

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. 

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 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

•HR 3663 IH

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, used by a 

13 natural gas pipeline providing transportation or stor14 age of natural gas, subject to the jurisdiction of the 

15 Federal Energy Regulatory Commission. 

16 (5) PUBLIC UTILITY PROPERTY.—The term 

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

18 natural gas pipeline property) that is devoted to 

19 public service and is owned or used by any entity 

20 that performs a public service and is regulated by 

21 any governmental agency. 

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

23 this subsection unreasonably burden and discriminate 

24 against interstate commerce. A State, subdivision of a 

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

mstockstill on DSK4VPTVN1PROD with BILLS

3 

•HR 3663 IH

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

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

3 following such acts: 

4 (1) Assess natural gas pipeline property at a 

5 value that has a higher ratio to the true market 

6 value of the natural gas pipeline property than the 

7 ratio that the assessed value of other commercial 

8 and industrial property in the same assessment ju9 risdiction has to the true market value of the other 

10 commercial and industrial property. 

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

12 may not be made under paragraph (1). 

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

14 on natural gas pipeline property at a tax rate that 

15 exceeds the tax rate applicable to commercial and in16 dustrial property in the same assessment jurisdic17 tion. 

18 (4) Impose any other tax that discriminates 

19 against a natural gas pipeline providing transpor20 tation subject to the jurisdiction of the Federal En21 ergy Regulatory Commission. 

22 SEC. 2. JURISDICTION OF COURTS; RELIEF. 

23 (a) GRANT OF JURISDICTION.—Notwithstanding sec24 tion 1341 of title 28, United States Code, and without 

25 regard to the amount in controversy or citizenship of the 

mstockstill on DSK4VPTVN1PROD with BILLS

4 

•HR 3663 IH

1 parties, the district courts of the United States shall have 

2 jurisdiction, concurrent with other jurisdiction of the 

3 courts of the United States, of States, and of all other 

4 taxing authorities and taxing jurisdictions, to prevent a 

5 violation of section 1. 

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

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

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

9 gas pipeline property exceeds by at least 5 percent the 

10 ratio of assessed value to true market value of other com11 mercial and industrial property in the same assessment 

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

13 commercial and industrial property in the assessment ju14 risdiction to the true market value of all other commercial 

15 and industrial property cannot be determined to the satis16 faction of the court through the random-sampling method 

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

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

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

20 which relief under this Act may be granted: 

21 (1) An assessment of the natural gas pipeline 

22 property at a value that has a higher ratio of as23 sessed value to the true market value of the natural 

24 gas pipeline property than the ratio of the assessed 

25 value of all other property (excluding public utility 

mstockstill on DSK4VPTVN1PROD with BILLS

5 

•HR 3663 IH

1 property) subject to a property tax levy in the as2 sessment jurisdiction has to the true market value of 

3 all other property (excluding public utility property). 

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

5 on the natural gas pipeline property at a tax rate 

6 that exceeds the tax rate applicable to all other tax7 able property (excluding public utility property) in 

8 the taxing jurisdiction. 

Æ 

mstockstill on DSK4VPTVN1PROD with BILLS