II 

114TH CONGRESS 

1ST SESSION S. 2117 

To prevent certain discriminatory taxation of natural gas pipeline property. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 1, 2015 

Mr. CORNYN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

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.—In this Act: 

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

7 means valuation for a property tax that is levied by 

8 a taxing 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 (whether real, personal, and intangible) 

13 used by a natural gas pipeline providing transpor14 tation or storage of natural gas subject to the juris15 diction of the Federal 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.—A State, subdivision of 

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

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


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

2 following: 

3 (1) ASSESSMENTS.—Assess natural gas pipeline 

4 property at value that has a higher ratio to the true 

5 market value of the natural gas pipeline property 

6 than the ratio that the assessed value of commercial 

7 and industrial property in the same assessment ju8 risdiction has to the true market value of such com9 mercial and industrial property. 

10 (2) ASSESSMENT TAXES.—Levy or collect a tax 

11 on an assessment that may not be made under para12 graph (1). 

13 (3) AD VALOREM TAXES.—Levy or collect an ad 

14 valorem property tax on natural gas pipeline prop15 erty at a tax rate that exceeds the tax rate applica16 ble to commercial and industrial property in the 

17 same assessment jurisdiction. 

18 (4) OTHER TAXES.—Impose any other tax that 

19 discriminates against a natural gas pipeline pro20 viding transportation or storage of natural gas sub21 ject to the jurisdiction of the Federal Energy Regu22 latory Commission. 

23 SEC. 2. JURISDICTION OF COURTS; RELIEF. 

24 (a) GRANT OF JURISDICTION.—Notwithstanding sec25 tion 1341 of title 28, United States Code, and without 


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1 regard to the amount in controversy or citizenship of the 

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

3 jurisdiction, concurrent with other jurisdiction of the 

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

5 taxing authorities and taxing jurisdictions, to prevent a 

6 violation of section 1. 

7 (b) RELIEF IN GENERAL.—Except as 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 commercial 

12 and industrial property in the same assessment jurisdic13 tion. If the ratio of the assessed value of commercial and 

14 industrial property in the assessment jurisdiction to the 

15 true market value of commercial and industrial property 

16 cannot be determined to the satisfaction of the court 

17 through the random-sampling method known as a sales 

18 assessment ratio study (to be carried out under statistical 

19 principles applicable to such a study), each of the following 

20 shall be a violation of section 1 for which relief under this 

21 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. 

Æ 


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