End Discriminatory State Taxes for Automobile Renters Act of 2013

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 2013 2. 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. Definitions (a) Assessment and assessment jurisdiction The term assessment assessment jurisdiction (b) Commercial and industrial property The term commercial and industrial property (c) Discriminatory tax The term discriminatory tax (1) A tax discriminates against the rental of motor vehicles if a State or Locality imposes the tax on, or with respect to— (A) the rental of motor vehicles but not on, or with respect to, the rental of more than 51 percent of the rentals of other tangible personal property rented within the State or Locality, or (B) the rental of motor vehicles at a tax rate that exceeds the tax rate generally applicable to at least 51 percent of the rentals of other tangible personal property within the same State or Locality. (2) A tax discriminates against the business of renting motor vehicles if a State or Locality imposes the tax on, or with respect to— (A) the business of renting motor vehicles but not on, or with respect to, the business of more than 51 percent of the 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 (B) the business of renting motor vehicles, at a tax rate that exceeds the tax rate generally applicable to the business of more than 51 percent of the other commercial and industrial taxpayers within the State or Local jurisdiction. (3) A tax discriminates against motor vehicle rental property if a State or Locality— (A) assesses motor vehicle rental property at a value that has a higher ratio to the true market value of the property than the ratio that the assessed value of other commercial and industrial property of the same type in the same assessment jurisdiction has to the true market value of the other commercial and industrial property, (B) levies or collects a tax on an assessment that may not be made under subparagraph (A), or (C) levies or collects an ad valorem property tax on motor vehicle rental property at a tax rate that exceeds the tax rate applicable to commercial and industrial property in the same assessment jurisdiction. (d) Local or locality The terms Local Locality (e) Motor vehicle The term motor vehicle section 13102(16) (f) Other commercial and industrial taxpayers The term other commercial and industrial taxpayers (g) Rental of motor vehicles The term rental of motor vehicles (h) State The term State (i) Tax Except as otherwise specifically provided below, the term tax tax section 40116(d) (j) Tax base The term tax base tax base (k) Tax rate generally applicable to other commercial and industrial taxpayers The term tax rate generally applicable to other commercial and industrial taxpayers (1) the tax rate imposed on the greatest number of other commercial and industrial taxpayers or their customers, or (2) the unweighted average rate at which the tax is imposed. 4. Prohibited acts No State or Locality may levy or collect a discriminatory tax on the rental of motor vehicles, the business of renting motor vehicles, or motor vehicle rental property. 5. Remedies (a) Jurisdiction Notwithstanding any provision of section 1341 (b) Burden of proof The burden of proof in any proceeding brought under this Act shall be upon the party seeking relief and shall be by a preponderance of the evidence on all issues of fact. (c) Relief In granting relief against a tax which is imposed in violation of section 4, the court shall strike the tax in its entirety, unless the court finds the tax— (1) is the equivalent of a specific tax imposed on at least 51 percent of other commercial and industrial taxpayers, and (2) is not discriminatory in effect. If such tax is discriminatory in effect with respect to tax rate or amount only, the court shall strike only the discriminatory or excessive portion of the tax as determined by the court. Notwithstanding subsection (b) of this section, the burden of proof on the issue of whether a tax is the equivalent of a tax imposed on other commercial and industrial taxpayers shall be on the State or Locality that imposes the tax. (d) Cause of action (1) An action to enforce the provisions of this Act may be brought only by a person who— (A) rents motor vehicles to another person, (B) is engaged in the business of renting motor vehicles, (C) owns motor vehicle rental property, or (D) rents a motor vehicle from another person. (2) A person who rents a motor vehicle from another person and is seeking relief under this Act may only bring a cause of action against the State or Locality imposing the discriminatory tax as defined by this Act. 6. Limitations This Act shall not be construed to constitute the consent of Congress to State or Local taxation that would be prohibited in the absence of this Act. 7. Effective date (a) Effective date The provisions of this Act shall become effective on the date of the enactment of this Act. (b) Exclusion Discriminatory taxes as defined by this Act are not prohibited under this Act if— (1) State or Local legislative authorization for a discriminatory tax that is in effect as of the date of the enactment of this Act, does not lapse, the tax rate does not increase and the tax base for such tax does not change; or (2) a State enacts legislation by the date of the enactment of this Act— (A) that specifically authorizes a Locality to impose a discriminatory tax; (B) the Locality imposes the authorized tax within five years from the date the State enacted the authorization for the Local tax; and (C) the tax rate imposed by the Locality is not increased and the tax base for such tax does not change.

Summary: End Discriminatory State Taxes for Automobile Renters Act of 2013 - Prohibits states or local governments from levying or collecting a discriminatory tax (generally, a tax or tax assessment that is applicable to the rental of motor vehicles or motor vehicle businesses or property, but not to the majority of other rentals of tangible personal property within a state or locality) on the rental of motor vehicles, motor vehicle rental businesses, or motor vehicle rental property.