I 
108TH CONGRESS 
2D SESSION 
H. R. 4726 
To prevent discriminatory taxation of natural gas pipeline property by the 
States. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2004 
Mr. CARTER introduced the following bill; which was referred to the 
Committee on the Judiciary 
A BILL 
To prevent discriminatory taxation of natural gas pipeline 
property by the States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. PREVENTION OF DISCRIMINATORY TAXATION 
OF NATURAL GAS PIPELINE PROPERTY. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘assessment’’ means valuation for 
a property tax levied by a taxing district; 
(2) the term ‘‘assessment jurisdiction’’ means a 
geographical area used in determining the assessed 
value of property for ad valorem taxation;
(3) the term ‘‘natural gas pipeline property’’ 
means all property, real, personal and intangible, 
owned or used by a natural gas pipeline providing 
transportation or storage subject to the jurisdiction 
of the Federal Energy Regulatory Commission; 
(4) the term ‘‘commercial and industrial prop-
erty’’ means property, other than natural gas pipe-
line property, public utility property and land used 
primarily for agricultural purposes or timber grow-
ing, devoted to a commercial or industrial use and 
subject to a property tax levy; 
(5) the term ‘‘public utility property’’ means 
property, other than natural gas pipeline property, 
devoted to public service and owned or used by any 
company which performs a public service and which 
company is regulated by any governmental agency, 
and 
(6) the term ‘‘State’’ as the meaning given such 
term in section 110(d) of title 4 of the United States 
Code. 
(b) PROHIBITED ACTS.—The following acts unrea-
sonably burden and discriminate against interstate com-
merce, and a State, subdivision of a State, authority act-
ing for a State or for a subdivision of a State, or any
other taxing authority, taxing jurisdiction, or taxing dis-
trict established under State law may not do any of them: 
(1) Assess natural gas pipeline property at a 
value that has a higher ratio to the true market 
value of the natural gas pipeline property than the 
ratio that the assessed value of other commercial 
and industrial property in the same assessment ju-
risdiction has to the true market value of the other 
commercial and industrial property. 
(2) Levy or collect a tax on an assessment that 
may not be made under paragraph (1). 
(3) Levy or collect an ad valorem property tax 
on natural gas pipeline property at a tax rate that 
exceeds the tax rate applicable to commercial and in-
dustrial property in the same assessment jurisdic-
tion. 
(4) Impose any other tax that discriminates 
against a natural gas pipeline providing transpor-
tation subject to the jurisdiction of the Federal En-
ergy Regulatory Commission. 
(c) JURISDICTION
OF
COURTS.—Notwithstanding 
section 1341 of title 28 of the United States Code, or no-
tions of comity, and without regard to the amount in con-
troversy or citizenship of the parties, a district court of 
the United States shall have jurisdiction, concurrent with
other jurisdiction of courts of the United States, States, 
and all other taxing authorities and taxing jurisdictions 
to prevent a violation of subsection (b). Relief may be 
granted under this subsection only if the ratio of assessed 
value to true market value of natural gas pipeline property 
exceeds by at least 5 percent the ratio of assessed value 
to true market value of other commercial and industrial 
property in the same assessment jurisdiction. If the ratio 
of the assessed value of other commercial and industrial 
property in the assessment jurisdiction to the true market 
value of all other commercial and industrial property can-
not be determined to the satisfaction of the district court 
through the random-sampling method known as a sales 
assessment ratio study (to be carried out under statistical 
principles applicable to such a study), the court shall find, 
as a violation of this section— 
(1) an assessment of the natural gas pipeline 
property at a value that has a higher ratio to the 
true market value of the natural gas pipeline prop-
erty than the assessed value of all other property 
subject to a property tax levy in the assessment ju-
risdiction has to the true market value of all other 
commercial and industrial property; and 
(2) the collection of an ad valorem property tax 
on the natural gas pipeline property at a tax rate