End Discriminatory State Taxes for Automobile Renters Act of 2017

To protect consumers from discriminatory State taxes on motor vehicle rentals. 1. Short title This Act may be cited as the End Discriminatory State Taxes for Automobile Renters Act of 2017 2. Findings; purpose (a) Findings Congress finds the following: (1) Congress has prohibited economic protectionism by State and local governments that unduly burden or discriminate against interstate commerce and transportation under the authority granted by the Commerce Clause of the Constitution by enacting laws such as the Railroad Revitalization and Regulatory Reform Act of 1976, the Motor Carrier Act of 1980, the Bus Regulatory Reform Act of 1982, and the Airport and Airway Improvement Act of 1982. (2) In Gibbons v. Ogden (22 U.S. 1 (1824)), a case challenging the exclusive right of navigating the waters of New York granted by that State, the Supreme Court affirmed that it is the sole right of Congress to regulate commerce between the States under what Chief Justice John Marshall recognized as the dormant Commerce Clause. (3) Since 1990, over 100 discriminatory taxes have been imposed by State and local governments on motor vehicle rentals in violation of the dormant Commerce Clause. (b) 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. 3. Prohibition on discrimination (a) In general Chapter 805 80505. Tax discrimination against motor vehicle rental property (a) Definitions In this section: (1) Assessment and assessment jurisdiction (A) Assessment The term assessment (B) Assessment jurisdiction The term assessment jurisdiction (2) Commercial and industrial property The term commercial and industrial property (3) Commercial and industrial taxpayers The term other commercial and industrial taxpayers (4) Covered person The term covered person (A) rents motor vehicles to another person; (B) is engaged in the business of renting motor vehicles; (C) owns motor vehicle rental property; (D) rents a motor vehicle from another person; or (E) purchases motor vehicle rental property. (5) Discriminatory tax The term discriminatory tax (A) A tax discriminates against the rental of motor vehicles if a State or Locality imposes the tax on, or with respect to— (i) the rental of motor vehicles but the tax is not a generally applicable tax on, or with respect to, more than 51 percent of the rentals of other tangible personal property within the State or Locality; or (ii) the rental of motor vehicles at a tax rate that exceeds the generally applicable tax rate on at least 51 percent of the rentals of other tangible personal property within the same State or Locality. (B) A tax discriminates against the business of renting motor vehicles if a State or Locality imposes the tax on, or with respect to— (i) the business of renting motor vehicles but the tax is not a generally applicable tax on, or with respect to, more than 51 percent of the businesses of 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 (ii) the business of renting motor vehicles at a tax rate that exceeds the generally applicable tax rate on at least 51 percent of the business of commercial and industrial taxpayers within the State or Local jurisdiction. (C) A tax discriminates against motor vehicle rental property if a State or Locality— (i) assesses motor vehicle rental property at a value that has a higher ratio to the true market value of the property than the ratio of the assessed value to the true market value applicable to commercial and industrial property in the same assessment jurisdiction; (ii) levies or collects a tax on an assessment that may not be made under clause (i); or (iii) levies or collects an ad valorem property tax on motor vehicle rental property at a generally applicable tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction. (6) Local or locality The terms Local Locality (7) Motor vehicle The term motor vehicle (8) Motor vehicle rental property The term motor vehicle rental property (9) Rental of motor vehicles The term rental of motor vehicles (10) Rentals of other tangible personal property The term rentals of other tangible personal property (11) State The term State (12) Tax Except as otherwise specifically provided below, the term tax tax (13) Tax base The term tax base tax base (14) Generally applicable tax The term generally applicable tax (A) the gross receipts of rentals of other tangible personal property or other commercial and industrial taxpayers within the State or Locality to which the tax is imposed by the State or Locality compared to the gross receipts of rentals of other tangible personal property or other commercial and industrial taxpayers within the State or Locality; or (B) another method used to determine whether more than 51 percent of rentals of other tangible personal property or other commercial and industrial taxpayers is subject to the tax. (b) Unreasonable burdens and discrimination against interstate commerce (1) In general The following acts unreasonably burden and discriminate against interstate commerce, and a State or Locality may not do any of them: (A) Levy or collect a discriminatory tax on the rental of motor vehicles. (B) Levy or collect a discriminatory tax on the business of renting motor vehicles. (C) Levy or collect a discriminatory tax on motor vehicle rental property. (2) Exclusion Discriminatory taxes are not prohibited under this section if the tax is imposed as of the date of the enactment of this section, does not lapse, the tax rate does not increase, and the tax base for such tax does not change. (c) Remedies (1) In general Notwithstanding section 1341 of title 28, a covered person aggrieved of a violation of subsection (b) may bring a civil action in a district court of the United States seeking damages, injunctive relief, other legal or equitable relief, or declaratory relief. (2) Relief In granting relief against a tax levied or collected in violation of subsection (b), if the tax is a discriminatory tax the court shall strike only the discriminatory or excessive portion of the tax. (3) Burden of proof (A) In general Except as provided in subparagraph (B), a covered person shall have the burden of proving, by a preponderance of the evidence, that the levying or collecting of a tax violates subsection (b). (B) Equivalent of other taxes If the court determines that the levying or collecting of a tax violates subsection (b), the State or Locality shall have the burden of proving, by a preponderance of the evidence, that the tax is the equivalent of a tax imposed on other commercial and industrial taxpayers under paragraph (2). (4) Other remedies Nothing in this subsection shall limit any cause of action or remedy available under any other provision of Federal or State law. (d) Limitations This section shall not be construed to constitute the consent of Congress to State or Local taxation that would be prohibited in the absence of this section. . (b) Clerical amendment The table of sections for chapter 805 section 80504 80505. Rules relating to State taxation with respect to automobile rentals. .

Summary: End Discriminatory State Taxes for Automobile Renters Act of 2017 This bill prohibits state or local taxes that discriminate against the rental of motor vehicles, the business of renting motor vehicles, or motor vehicle rental property, except where such tax is imposed as of the enactment date of this bill, the tax does not lapse, the tax rate does not increase, and the tax base for such tax does not change. A tax that is imposed on the rental of motor vehicles or a motor vehicle rental business is discriminatory if: (1) it is not generally applicable to more than 51% of other rentals of tangible personal property or businesses within a state or locality on the same tax base as the state or locality employs respect to the business of renting motor vehicles, or (2) the rate exceeds the generally applicable tax rate on at least 51% of the other rentals of tangible personal property or businesses within the jurisdiction. A tax discriminates against motor vehicle rental property if a state or locality: (1) assesses the property at a value that has a higher ratio to the true market value of the property than the ratio applicable to commercial and industrial property, or (2) levies or collects either a tax on an assessment prohibited by this bill or an ad valorem property tax on motor vehicle rental property at a generally applicable rate that exceeds the rate for commercial and industrial property in the jurisdiction. A person who is aggrieved by a discriminatory tax may bring a civil action in a U.S. district court for damages, injunctive relief, other legal or equitable relief, or declaratory relief.